Bengaluru
oi-Madhuri Adnal
A suspected fake medicine racket in Bengaluru has come under the scanner after a Special Investigation Team (SIT) of the Bengaluru Police and the Drugs Control Department found that counterfeit and repackaged medicines may have been supplied to more than 90 hospitals and clinics in the city.
The Special Investigation Team (SIT) of the Bengaluru Police, along with the Drugs Control Department, arrested Veeresh Kumar Jain, owner of Krupa Healthcare near Minerva Circle. Investigators suspect the pharmacy was being used as a storage and distribution point for the medicines.
Bengaluru Police and the Drugs Control Department are investigating a suspected fake medicine racket potentially supplying counterfeit and repackaged drugs, including cancer medicines, to over 90 hospitals, leading to the arrest of Krupa Healthcare owner Veeresh Kumar Jain and the seizure of Rs 5 crore in suspected fake medicines.

The investigation has also brought more than 15 medical representatives under the scanner for their suspected role in transporting or facilitating the supply of the medicines.
Investigators suspect that the network was dealing in counterfeit cancer medicines, other life saving drugs and ICU injections. The medicines were allegedly supplied to hospitals, clinics and medical shops at discounts of up to 50 per cent.
According to the investigation, medicines were allegedly procured cheaply and then repackaged before being sold under different names.
Officials suspect that expired medicines were also put into new containers and fitted with counterfeit labels. Some of the labels were allegedly made to resemble those of established pharmaceutical companies.
Karnataka Health Minister UT Khader said the preliminary investigation had pointed to an interstate operation. According to him, the network was allegedly procuring cheap bulk drugs from manufacturing hubs in Telangana and Himachal Pradesh before taking them to a facility near Bidadi.
The medicines were allegedly refilled into new vials at the facility and relabelled as premium imported brands of multinational companies.
Khader also said counterfeit drugs carrying the names of established pharmaceutical companies were allegedly being prepared for use by patients and in ICU wards.
Rs 5 Crore Worth Of Suspected Fake Medicines Seized
The racket came to light after the Karnataka Health and Family Welfare Department and the Karnataka Food Safety and Drug Administration raided a farmhouse near the Bidadi Toll Gate on August 18.
Authorities seized suspected fake and expired medicines estimated to be worth nearly Rs 5 crore. Investigators also recovered what they suspect were fake bills, counterfeit labels and equipment allegedly used for filling injections.
The seizure led to a wider investigation into the source of the medicines and their distribution network.
Searches were subsequently carried out at more than 10 locations across Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Maharashtra.
Government Forms Six Member SIT
Khader said the Karnataka government moved quickly after the seizure and constituted a six member SIT on August 19 after discussions with Chief Minister DK Shivakumar and Home Minister Priyank Kharge.
The SIT was headed by a senior IPS officer, with officials from the Food Safety and Drug Administration and Commercial Taxes Department also part of the investigation.
Khader said the complete list of suspected spurious and counterfeit medicines had been communicated to the Union Government and all state governments. He also said every hospital and nursing home in Karnataka had been directed not to use the seized medicines.
The minister said he had written to Union Health Minister JP Nadda seeking the support of the Central Drugs Standard Control Organisation (CDSCO) and other central regulatory agencies to trace the suspected supply chain and prevent the medicines from being distributed across the country.
As part of the investigation, the SIT and Drugs Control Department raided Krupa Healthcare near Minerva Circle in Bengaluru. Veeresh Kumar Jain was arrested following the operation, while suspected counterfeit medicines were also seized. Police suspect Jain had been running the firm for around five years.
Investigators are now examining the pharmacy’s records and financial transactions to establish the movement of medicines and money.
Vamsi Krishna, Joint Commissioner of Police (West) and head of the SIT, said the investigation was continuing and that the full extent of the suspected interstate network was yet to be established.
“We have seized bank transaction records, purchase and sale vouchers, and other documents. These are being collated to establish the flow of medicines as well as money,” he told The Indian Express.
Suspected Kingpin Still Absconding
Investigators have also linked Veeresh Kumar to a man identified as Prashant, who has been described as a key accused and suspected kingpin of the network.
Prashant is currently absconding.
The SIT is now trying to trace him and establish the alleged links between suppliers, distributors, medical representatives, pharmacies and hospitals.
The investigation is also looking into how the suspected counterfeit medicines moved across state borders and reached buyers in Bengaluru.
Khader said the government would continue to pursue every link in the alleged network and ensure that those responsible face action under the law. “The investigation is underway, and I will place the complete findings before the public once it concludes,” he said.
