ED Pulls Up 5 Pharma Firms in Tramadol-Alprazolam Black Market Probe

“Various incriminating records, digital devices like mobile phone, laptop etc, and other relevant evidences critical in establishing the financial trail and uncovering the modus operandi of the entities involved were recovered and seized,” the agency stated in its official press release dated June 18, 2025.

The ED's preliminary investigation revealed that middlemen were sourcing large quantities of psychotropic drugs from pharmaceutical manufacturers and illegally diverting them to the black market. These drugs, which are Schedule H and H1 substances under the Drugs and Cosmetics Act and regulated under NDPS, were reportedly being sold at inflated prices through drug peddlers, generating substantial proceeds of crime.

“Middle men were procuring huge quantities of psychotropic tablets from pharmaceutical firms/ manufacturing companies and were diverting it for sale in black market at high cost than the retail price through drug peddlers, thereby generating huge Proceeds of Crime,” the ED noted.

The involvement of licensed pharma firms in such diversions poses serious concerns for the sector, particularly with regard to regulatory compliance, Schedule H drug monitoring, and the abuse potential of prescription medications. It also highlights the increased scrutiny now being placed on the supply chain integrity of psychotropic and Schedule X drugs.

The ED has confirmed that further investigation is ongoing, and more evidence is expected to emerge from the analysis of seized digital data and documents.