Major Crackdown: ₹28.5 Cr Attached in Codeine Drug Network
- Sakshi Mishra
- Feb 4
- 5 min read
The Modus Operandi: A Complex Network of Dummy Corporations and Forgery
The examination of the codeine trafficking organisation has revealed a highly elaborate "paper-driven" criminal framework aimed at misleading regulatory and tax officials. The accused primarily operated under the name "Shaili Traders" in Ranchi, Jharkhand, making use of falsified documents and counterfeit drug licenses to acquire large amounts of codeine-infused cough syrups like Phensedyl and Eskuf. In order to create an illusion of credibility, the organisation set up an extensive network of at least 51 dummy corporations in key areas of Jharkhand (Ranchi, Palamu, Bokaro) and Uttar Pradesh (Varanasi, Sonbhadra, Mirzapur, and Ballia).
The situation arose from a comprehensive investigation led by a Special Investigation Team (SIT) established by the government of Uttar Pradesh to combat the illicit trade of cough syrups containing codeine, a pharmaceutical product that includes codeine, an opioid derivative controlled under the Narcotic Drugs and Psychotropic Substances Act of 1985 (NDPS Act) due to its risk of misuse and dependency.
The inquiry, which commenced in 2024 and ramped up throughout 2025, uncovered a sophisticated criminal organisation engaged in the illegal acquisition, storage, diversion, distribution, and interstate trafficking of these regulated substances in quantities that exceeded legal allowances. Law enforcement indicated that the operations of this organisation affected no fewer than 28 districts in Uttar Pradesh and reached into neighbouring states and across international borders, including countries such as Nepal and Bangladesh. The key individual at the heart of the scandal is Shubham Jaiswal, who is purported to be the mastermind behind the smuggling activities. Authorities have released Look Out Circulars against him along with at least 29 other individuals, which include entrepreneurs and alleged partners believed to be involved in creating counterfeit invoices and enabling the unlawful accumulation of codeine syrups.
In December 2025, Shubham's father, Bhola Prasad, who lives in Varanasi, was apprehended after being detained at Kolkata’s Dum Dum International Airport while supposedly trying to escape the nation. He is currently being held in judicial custody in Sonbhadra district.
The central strategy of this operation hinged on a methodical "diversion" approach. Although officially recorded as legitimate pharmaceutical distributors, these entities operated merely as "billing agencies." These dummy firms generated fictitious GST receipts and counterfeit invoices to offer legal protection for the extensive movement of regulated substances. This logistical deception enabled the operation to transfer almost 8.9 million bottles of syrup from 2023 to 2025. By the moment the SIT and Varanasi Police intervened, the organisation had successfully redirected a quantity of drugs estimated to have a black-market worth surpassing ₹100 crore, routed through an intricate network of unlawful financial pathways. In accordance with thorough investigative results, the Special Investigation Team (SIT) compiled an extensive document that pinpointed both movable and immovable assets purportedly secured through financial gains from illegal activities associated with the illicit trade of codeine cough syrup. Based on this document, a relevant court exercised its authority under Section 107 of the Bharatiya Nagarik Suraksha Sanhita
(BNSS), which enables the seizure and confiscation of property obtained from criminal behaviour, and issued a directive on 22 January 2026 for the attachment of the specified properties. Following the court's directive, officials put a hold on two fixed deposit accounts worth around ₹1.14 crore, froze funds in bank accounts totalling over ₹6.8 lakh, and confiscated a Mercedes-Benz luxury car estimated at ₹1.22 crore. Furthermore, two residential buildings in Varanasi, acquired in 2023 for ₹3.03 crore under the name of the accused’s spouse, were also subjected to attachment, along with a significant commercial property located in Bhelupur, Varanasi, which was purchased in 2025 for about ₹23 crore, registered in the name of the wife as well. Investigative bodies have indicated that these properties were obtained using funds derived from the syndicate's illegal codeine syrup dealings. The attachment process was carried out collaboratively by SIT representatives, local police, the District Magistrate's office in Varanasi, and judicial officials tasked with ensuring lawful implementation.
Law enforcement and enforcement documents further indicate that the syndicate methodically gathered significant amounts of regulated cough syrups that vastly surpassed legitimate medical needs. This was reportedly accomplished through the use of fraudulent drug licenses, falsified invoices, shell companies, and front organisations, facilitating the rerouting of pharmaceutical shipments into the black market. Numerous FIRs have been lodged under different sections of the Bharatiya Nyaya Sanhita (BNS) and the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) for offences relating to illegal possession, diversion, trafficking, conspiracy, and forgery. Coordinated efforts across multiple districts led to the filing of over 128 FIRs, the revocation of 280 drug licenses throughout Uttar Pradesh, and the confiscation of hundreds of thousands of bottles of codeine cough syrup, collectively worth several crores of rupees. Various raids have revealed considerable stockpiles that were allegedly meant for trafficking across state and national borders. Additionally, law enforcement authorities have issued lookout notices targeting suspected suppliers and distributors, while simultaneous initiatives are being pursued to locate fugitives and confiscate passports to avert escape from justice.
Legally, those accused are being prosecuted under stringent laws, including the NDPS Act of 1985 regarding the illegal import, export, possession, and trafficking of regulated substances, as well as pertinent sections of the Bharatiya Nyaya Sanhita (BNS) corresponding to fraud, conspiracy, organised crime, and forgery of documents. The procedures for attachment and forfeiture have commenced under the BNSS, allowing courts to seize properties believed to be connected to criminal profits. Prosecution agencies are anticipated to present comprehensive financial documentation, forensic proof, and transaction assessments to the trial court to demonstrate a direct link between the confiscated assets and the alleged unlawful activities.
Beyond its legal implications, the situation has sparked considerable concerns related to public health and society. Cough syrups that contain codeine, although they are legitimate medical products when prescribed and utilised correctly, carry significant dangers when they are sold in illegal markets. As an opioid, codeine can lead to feelings of euphoria and dependence when misused, and its unregulated use has been associated with addiction and widespread misuse, especially among at-risk groups. The extensive nature of the operation underscores weaknesses in pharmaceutical regulation and enforcement, which were reportedly exploited through forged documents and the improper use of licensing systems.
Looking ahead, law enforcement officials have stated that the inquiry remains active, with enhanced collaboration among units dedicated to financial crimes, drug enforcement agencies, and interstate task forces. Additional seizures, arrests, new charge filings, and legal proceedings are expected as the case goes through judicial examination, marking what authorities refer to as one of the most thorough crackdowns on organised drug trafficking in the pharmaceutical sector within the area.
CONCLUSION
The current situation not only uncovers a complex smuggling operation involving pharmaceuticals but also points to a significant institutional shortcoming in protecting public health. Research indicates that cough syrups containing codeine were excessively misdirected to young individuals, escalating the severity of the situation and raising serious concerns regarding the enforcement of regulations, accountability of ethics, and the safeguarding of children's health. Even though India has strict laws governing narcotics and pharmaceuticals, the persistent discovery of such illicit operations underscores a concerning disconnect between legislation and its application. The consequences of these shortcomings primarily impact everyday citizens, as the availability of safe healthcare is inconsistent, eroding the constitutional promise of equality and the right to life as stated in Article 21. Although the confiscation of assets and legal actions indicate progress, genuine deterrence will only be established when transgressions are met with reliable and uniform penalties.
SOURCES @: Times of India, The Hans India,
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