Crime
ED Cracks Down on Rs 2 Crore Drug Racket: Cash, Jewellery Seized, Two Accused Nabbed
The Enforcement Directorate (ED) on Monday announced the seizure of cash and jewellery worth Rs 2 crore and the apprehension of two accused individuals wanted by the Narcotics Control Bureau (NCB) in a high-profile drug trafficking case. The operation involved searches across multiple northern states, including Jammu and Kashmir, Delhi, Himachal Pradesh, and Haryana.
The Case: Illegal Sale & Diversion of Codeine-Based Cough Syrup (CBCS)
The money laundering investigation stems from a complaint by the NCB regarding the illicit trade of Codeine-Based Cough Syrup (CBCS), which is widely abused as a narcotic. The ED has identified Raees Ahmed Bhat and others as key figures involved in the unauthorized sale and distribution of CBCS for illicit financial gains.
The Network Behind the Trafficking
The probe revealed that Cocrex, a CBCS brand, was unlawfully procured from its manufacturer, Vidit Healthcare in Sirmaur, Himachal Pradesh. The company’s managing partner, Neeraj Bhatia, a resident of Panipat, Haryana, allegedly supplied the syrup to multiple shell companies, including:
- S S Industries (Faridabad) – owned by Sumesh Sareen
- N K Pharmaceuticals, Kansal Pharmaceuticals, Kansal Industries – controlled by Niket Kansal and his family members (Delhi)
- Accomplice: Garv Bhambhari (Faridabad)
Between 2018 and 2024, these entities allegedly procured CBCS from Vidit Healthcare and sold it through unauthorized channels. Drug regulatory authorities later revoked the licenses of several of these firms. The investigation uncovered that between 2019 and 2025, N K Pharmaceuticals and its affiliated firms procured approximately 55 lakh bottles of CBCS by paying over Rs 20 crore to Vidit Healthcare.
Money Laundering & Seizures
The ED suspects that these cough syrups were diverted to the open market, generating huge illicit profits funneled through cash transactions and bank accounts linked to these entities.
During the searches, officials seized:
- Unaccounted cash worth Rs 40.62 lakh
- Jewellery valued at Rs 1.61 crore
- Crucial documentary and digital evidence
Additionally, two absconding accused—Garv Bhambhari and Mamta Kansal (mother of Niket Kansal)—were located, and their details have been shared with the NCB.
Cough Syrup Smuggling & Bangladesh Connection
CBCS brands like Phensedyl are frequently smuggled across India’s borders, particularly to Bangladesh, where they are seized in large quantities by agencies like the Border Security Force (BSF).
As investigations continue, authorities are working to dismantle the illicit drug distribution network and trace the full extent of financial fraud linked to the operation.