The Directorate of Enforcement (ED), Jalandhar Zonal Office, has arrested Abhishek Kumar for his alleged involvement in the generation and acquisition of proceeds of crime through the illegal sale of psychotropic drugs, including Tramadol and Alprazolam.
The arrest was made on December 9, 2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Kumar was produced before the Special Court (PMLA), SAS Nagar, which granted the ED six days of custody for further interrogation.
Case Originated from Punjab Police NDPS FIR
The ED initiated its investigation based on an FIR registered by the Punjab Police under various provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, pertaining to large-scale inter-state trafficking of psychotropic tablets and capsules.
The Punjab Police’s investigation had uncovered a network involved in the illegal trade of controlled substances, particularly Tramadol and Alprazolam, which are often misused for recreational purposes and considered highly addictive.
Following the FIR, the ED conducted search operations at 16 locations linked to Abhishek Kumar and related entities. The searches resulted in the seizure of incriminating documents, records, and evidence pointing to the diversion of pharmaceutical drugs for black-market sales.
Drug Network Involved Wholesalers and Manufacturers
ED’s probe revealed that a group of middlemen, wholesalers, and retailers were procuring large volumes of psychotropic drugs from pharmaceutical manufacturers and diverting them to the black market at prices significantly higher than their retail value.
The pharmaceutical companies identified in the probe include M/s Biogenetic Drugs Pvt. Ltd., M/s CB Healthcare, M/s Smilax Pharmachem Drug Industries, M/s Aster Pharma, and M/s Soul Health Care (India) Pvt. Ltd.
The agency found that these drugs were supplied to unauthorized sellers and drug peddlers, creating an illicit distribution chain that generated substantial proceeds of crime (POC).
75% of Stock Sold Illegally Through Shree Shyam Medical Agency
According to the investigation, Abhishek Kumar, through his firm M/s Shree Shyam Medical Agency, played a central role in the illegal diversion of psychotropic drugs.
Kumar allegedly procured bulk consignments of Tramadol and Alprazolam from legitimate wholesalers and manufacturers but diverted nearly 75% of the stock for illegal sale.
To conceal the illicit sales, he reportedly inflated the quantity of boxes shown in legal bills, thereby creating a paper trail that suggested legitimate transactions while keeping the actual off-book sales hidden.
The ED estimates that Kumar generated approximately ₹3.75 crore in cash from these black-market operations, which were subsequently laundered to project them as legitimate business earnings.
Psychotropic Drug Abuse and Financial Laundering
Officials stated that the illegal sale of Tramadol and Alprazolam has become a growing concern in Punjab and northern India, given their misuse as narcotic substitutes.
These drugs are tightly regulated under the NDPS Act, and their unauthorized distribution not only violates narcotics control laws but also fuels organized crime and money laundering networks.
The ED emphasized that proceeds from such illegal trade were systematically layered through medical agency accounts and cash transactions to disguise their origin and evade detection.
Further Investigation Underway
The ED has stated that further investigation is in progress to identify other individuals, distributors, and pharmaceutical suppliers involved in the illegal drug diversion network.
Officials are also examining the money trail and laundering methods used by Abhishek Kumar to invest or conceal the proceeds of crime.
The case marks a significant step in ED’s ongoing efforts to disrupt the financial networks behind the illicit pharmaceutical trade, which has emerged as a key driver of narco-linked money laundering in India.
