Fake cancer drugs, counterfeit Pfizer antibiotics supplied to hospitals: ED raids five premises in Bengaluru

 

 

The racket involved repackaging generic medicines into new vials and passing them off as branded antibiotics, including Pfizer's Zavicefta and Emblaveo. Investigators are also examining how these products entered the pharmaceutical supply chain and reached hospitals through distributors.

 

 

 

 

The ED searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002. The investigation began after Bengaluru South's Tavarekere Police Station registered FIR No. 0266/2026 on August 18, 2026.

 

The case followed a joint raid by the Drugs Control Authority and police at a residential property in C.K. Tandya village. Officials found medicines and pharmaceutical products stored without the required licences, permits or authorisations. They also detected that labels on the stored medicines had been replaced.

 

The FIR was registered under Section 318(4) of the Bharatiya Nyaya Sanhita, 2023, and Section 63 of the Copyright Act, 1957. After identifying the scheduled offences under the PMLA, the ED registered ECIR No. ECIR/BGZO/45/2026 and began investigating the suspected proceeds of crime.

 

 

 

According to the ED, a person identified as R. Prashanth arranged a farmhouse near Bidadi to manufacture, repackage and relabel medicines without the necessary drug licences and permissions.

 

Investigators allege that low-cost bulk pharmaceutical formulations, sourced from manufacturing centres in different states, were transferred into new vials and given labels of expensive Pfizer antibiotics, including Zavicefta and Emblaveo.

 

The products contained generic formulations but were presented as medicines carrying the Pfizer brand name. This could have misled buyers, distributors and healthcare providers about the actual contents, manufacturer and origin of the medicines.

 

 

The ED is also investigating the distribution network through which the suspected counterfeit medicines reached the market.

 

According to the agency, the products were distributed through DM Pharmaceuticals and supplied to Krupa Healthcare. Krupa Healthcare passed them on to other pharmaceutical entities and hospitals, with the counterfeit products reportedly mixed with genuine medicines to avoid detection.

 

The supply chain raises serious questions about how mislabelled medicines could enter hospital procurement and distribution networks. If the allegations are established, the racket could have put patients at risk by allowing medicines of uncertain composition and origin to be sold as established branded antibiotics.

 

For patients, doctors and hospitals, the identity and quality of medicines are critical. Passing off one formulation as another can undermine treatment decisions and create serious concerns about patient safety.

 

 

 

During searches at five premises in Bengaluru, the ED froze bank accounts belonging to Veeresh Kumar containing approximately Rs 9 lakh.

 

The agency also seized digital devices, documents and other material that could help investigators trace financial transactions, identify those involved and establish the flow of suspected proceeds of crime.

 

The seized material is expected to help the ED examine the links between the manufacturing, repackaging and distribution networks.

 

The investigation is continuing, with the agency examining the wider financial trail and the role of individuals and entities connected to the racket.