Lucknow: A widening probe into the narcotic cough syrup syndicate operating across Uttar Pradesh and neighbouring states has placed pharmaceutical major Abbott under the enforcement scanner. According to official findings, the company continued supplying cough syrup consignments to distributors whose links with illegal trafficking networks had already been flagged by central agencies. Notably, Abbott appointed two entities connected to Saharanpur resident Vibhor Rana—arrested earlier by the Narcotics Control Bureau (NCB) in Kolkata—as super distributors on separate occasions, raising questions over due diligence and compliance.
When heightened action by the UP STF and the State Drug Control Department disrupted sales in Uttar Pradesh and Uttarakhand, the company reportedly retrieved cough syrup stock valued at nearly ₹100 crore and redirected it to a Ranchi-based firm, Shaili Traders, owned by Shubham Jaiswal. Investigators allege that this diverted stock was subsequently trafficked across the Bangladesh border.
ED Prepares to Issue Notices; Senior Company Officials to Face Queries
The Enforcement Directorate (ED) has intensified its scrutiny of the case. The agency is preparing notices to Abbott’s senior officials and supply-chain decision-makers who authorised large supplies to firms now identified as part of the trafficking network—Delhi-based AB Pharmaceuticals (run by Abhishek Sharma) and Ranchi’s Shaili Traders.
Investigations confirm that consignments of the codeine-based cough syrup Phensedyl were systematically smuggled into Bangladesh. The syrup was manufactured at Abbott’s production facility in Baddi, Himachal Pradesh, which formally ceased production in December 2024. The ED is analysing the entire distributor roster for the last 10 years to map patterns of irregular allocation and repeated appointments of questionable firms. Officials are also verifying which outsourced or contracted units were authorised to manufacture codeine-based formulations.
Multiple raids across Uttar Pradesh and Delhi-NCR have revealed disturbing evidence. In several locations, including Ghaziabad, the authorities found illegal manufacturing units operating in small, unlicensed spaces—one notably hidden within a paint shop.
Chartered Accountants Under Lens for Financial Layering and Account Manipulation
The investigation has also brought three chartered accountants under ED’s radar for their suspected role in facilitating the syndicate’s financial operations. Varanasi-based Tushar and Vishnu Agarwal allegedly managed accounting and documentation for networks operating in eastern UP, while Arun Singhal is believed to have handled the financial records of Vibhor Rana and his associated firms in Saharanpur.
Officials believe these accountants executed elaborate layering, backdated billing, shell account operations, and transaction masking—helping the syndicate evade detection for years. The ED is currently reviewing their tax filings, bank statements, and suspicious financial trails.
Administrative Apathy: NCORD Held Only One Meeting This Year
The state administration’s preparedness against narcotics trafficking has also been called into question. Last year, the high-level NCORD (Narco Coordination Centre) chaired by the Chief Secretary convened four meetings to coordinate anti-narcotics operations across departments. This year, however, only one such meeting was held.
Enforcement teams failed to identify the large-scale codeine diversion network despite multiple agencies being part of coordinated operations. Officials have acknowledged that gaps in field intelligence allowed the syndicate to expand unchecked.
A Deep-Rooted Criminal Network: Fake Identities, Proxy Firms and Cross-Border Supply Routes
The ongoing probe indicates that the cough syrup network operated through a complex ecosystem of fake distributors, shell firms, commission agents, transporters and covert manufacturing units spread across several states. The rampant demand for codeine-based formulations in Bangladesh further strengthened the illegal trade, incentivising the creation of new proxy firms.
Investigators note that the suspected lapses within Abbott’s supply chain—especially repeated appointments of dubious entities—have added a troubling dimension to the case. Over the next few weeks, detailed questioning, supply-chain audits, and forensic accounting are expected to expand significantly.
