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ED eyes fresh summons in codeine syrup diversion racket
The documents pertain to nearly 454 additional firms and their operators and were seized during extensive searches carried out on Friday and Saturday.
The Enforcement Directorate (ED) is set to issue notices for questioning to operators of several firms after recovering documents linked to hundreds of entities during recent searches connected to an alleged codeine-based cough syrup diversion racket, senior officials said on Tuesday.
The documents pertain to nearly 454 additional firms and their operators and were seized during extensive searches carried out on Friday and Saturday. The searches covered 25 locations across six districts in three states, Uttar Pradesh, Jharkhand and Gujarat, linked to manufacturers, distributors and transporters allegedly involved in diverting pharmaceutical consignments meant for legitimate medical use into the illegal drug market.
During the operation, the agency seized financial records, invoices, transport documents, digital devices and bank-related papers. These materials are being examined to trace money flows and identify beneficiaries of the alleged racket.
Officials said several firms whose documents were recovered do not figure in earlier FIRs or police records, prompting the ED to begin background verification of their directors, partners and authorised signatories. “Based on preliminary scrutiny, the agency is preparing to summon firm operators to ascertain their alleged role in the diversion and laundering of proceeds of crime,” a senior official said.
The ED is also analysing bank accounts and transaction patterns linked to suspected shell firms to determine whether funds generated from the illegal sale of codeine-based cough syrup were routed through layered transactions to conceal their origin. A forensic audit of select accounts has been initiated, and further searches have not been ruled out.
Sources said the alleged racket involved diversion of large quantities of codeine-based cough syrup through manipulated purchase orders, falsified transport routes and the use of front firms. The illegal consignments were allegedly supplied to unauthorised markets across multiple states.
Officials said the outcome of the questioning would guide further action, including possible attachment of assets under the Prevention of Money Laundering Act (PMLA) and registration of fresh cases against newly identified entities.
