AHMEDABAD/NEW DELHI: Dr. Montu Patel, the embattled chairman of the Pharmacy Council of India (PCI), stands accused of masterminding a staggering ₹5,400 crore fraud, officials revealed. Acting on a tip-off, Ahmedabad authorities uncovered that Montu was preparing to flee to Canada with his family. In an effort to support the escape plan, he reportedly transferred crores of rupees through hawala operators to a professor based in Canada. The investigation is ongoing, with calls mounting for a full financial audit of the PCI leadership.
Hawala Network and Deep Political Ties Emerge
Investigators say Montu Patel used informal hawala channels to wire money abroad, circumventing standard banking systems. Such operations often evade regulatory tracking and simulate legal transfers, obscurely channelling income overseas. Sources suggest the funds traced through these transfers were intended to cover living costs and establish a second residence. Authorities are now working to untangle a complex web of domestic kickbacks and international asset holdings.
Pharma Regulator Under Scrutiny
Institution’s Image in Tatters
This scandal roils the regulatory landscape, casting a shadow over the PCI’s integrity. The council—tasked with maintaining pharmaceutical education standards—now faces serious questions over internal oversight failures. Critics argue this lapse may have enabled widespread malpractice in drug licensing and inspection processes. Parliamentary oversight committees are expected to demand accountability and transparency.
Wider Implications for Healthcare Governance
Dr. Patel’s alleged misconduct amplifies concern over regulatory capture in India’s healthcare sector. As state pharmaceutical councils are often intertwined with political influence, this episode may prompt lawmakers to call for independent audits and stricter conflict-of-interest rules. Experts warn that without systemic reform, similar fraudulent schemes may persist unchecked.
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What Happens Next?
Law enforcement agencies are pursuing hawala trail records to freeze overseas assets tied to Montu Patel. Simultaneously, a detailed audit of PCI accounts and asset disclosures is underway. If investigations yield incriminating evidence, Patel could face charges such as criminal conspiracy, money laundering (under the PMLA), and corruption. Courts will also consider revoking any international travel documents, while authorities collaborate with Canadian partners to recover transferred funds.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.