Bengaluru: The Directorate of Enforcement (ED), Bengaluru, has conducted searches at five premises linked to a counterfeit medicine racket involving the repackaging and relabelling of generic medicines as expensive branded antibiotics, including Pfizer products, Zavicefta and Emblaveo. During the operation, the agency froze bank accounts containing approximately Rs 9 lakh and seized digital devices, records and other incriminating documents.

The searches were conducted under the Prevention of Money Laundering Act (PMLA) as part of an ongoing money-laundering investigation arising from an FIR registered at Tavarekere Police Station in Bengaluru South district on August 18, 2026.

The case originated from a joint search operation conducted by the Drug Controlling Authority and police personnel on August 18 at a residential property in CK Tandya village. During the operation, the accused were allegedly found storing medicines and pharmaceutical drugs without valid licences, permits or authorisations and replacing labels on the stored medicines.

Following the discovery, a case was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS), pertaining to cheating, and Section 63 of the Copyright Act. Both offences are scheduled offences under the PMLA. Subsequently, the ED recorded an Enforcement Case Information Report (ECIR) and initiated an investigation under the anti-money laundering law.

The ED investigation revealed that the accused, R. Prashanth alias Prashanth Rajan Babu alias Prashanth Doreswamy, a medical representative, had allegedly arranged a farmhouse near Bidadi for manufacturing, repackaging and relabelling medicines without obtaining the required drug licence or permit.

According to the investigation, inexpensive bulk formulations sourced from manufacturing centres across various states were allegedly repackaged into new vials and fraudulently labelled as expensive Pfizer antibiotics, including Zavicefta and Emblaveo. Although the vials contained generic medicines, they carried labels bearing the Pfizer brand name.

The investigation further revealed that the counterfeit medicines were distributed through M/s DM Pharmaceuticals and supplied to M/s Krupa Healthcare. The latter, owned by accused Veeresh Kumar Jain alias Veeresh Kumar and located near Minerva Circle in Bengaluru, allegedly supplied the medicines to other pharmaceutical companies and hospitals along with genuine medicines to avoid detection.

During the searches, the ED froze bank accounts containing approximately Rs 9 lakh belonging to Veeresh Kumar Jain. The agency also seized digital devices, records and other incriminating documents belonging to various individuals connected with the case.

Earlier, the Special Investigation Team (SIT) and the Drug Control Authority had seized medicines and pharmaceutical products worth nearly Rs 4.9 crore in connection with the counterfeit medicine racket, reports The Times of India.

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