The Enforcement Directorate (ED) continued its sweeping crackdown for the second consecutive day in Uttar Pradesh’s high-profile cough syrup scandal, conducting searches at 25 locations for over 36 hours across multiple states. The agency says the case goes far beyond illegal pharmaceutical diversion, exposing a well-organised drug syndicate involving money laundering, shell companies and benami assets.
Raids are underway in Lucknow, Varanasi, Ahmedabad, Jaunpur, Saharanpur and Ranchi, with investigators tracking the movement of illicit funds generated through the illegal trade of codeine-based cough syrups. Officials say the operation has already unearthed large volumes of unaccounted money, luxury assets and complex financial layering designed to conceal proceeds of crime.
189 Shell Companies, ₹450 Crore in Paper Turnover
According to ED sources, searches conducted at Ranchi-based firm Shaili Traders, owned by Shubham Jaiswal, revealed the existence of 189 fake companies. These entities were allegedly used to show a fictitious turnover of nearly ₹450 crore, primarily to camouflage proceeds generated from the illegal diversion and trafficking of cough syrups.
Investigators found that these firms had no genuine business activity, physical operations or legitimate supply chains. Their sole purpose, officials said, was to route and legitimise drug money through fake invoices and circular transactions.
Luxury Lifestyle Under the Scanner
During raids at Shubham Jaiswal’s residence in Varanasi, ED teams recovered a large cache of luxury goods, including Prada and Gucci designer bags and high-end watches from brands such as Rado and Audemars Piguet. The estimated value of these items exceeds ₹1.5 crore.
Officials believe the extravagant lifestyle was financed directly through proceeds from the illegal cough syrup trade. The seized assets are now being assessed for attachment under the Prevention of Money Laundering Act (PMLA).
‘Palatial’ House of Dismissed Constable Raises Red Flags
A key focus of the investigation is Alok Pratap Singh, a dismissed police constable alleged to be deeply embedded in the syndicate. ED teams continue to search his residence located in a prime area of Lucknow.
Preliminary assessments suggest that nearly ₹5 crore was spent on construction alone, excluding the cost of land. Given the property’s location in a high-value locality, officials say the land valuation could significantly push the total asset value higher.
Government-authorised valuers have been deployed to assess the house, its interiors and associated assets, paving the way for possible seizure.
Pharma Companies’ Role Comes Under ED Lens
The probe has also brought Arpik Pharmaceuticals Private Limited under scrutiny. ED officials say the company was involved in the illegal diversion and trafficking of codeine-based cough syrups, in violation of drug control norms.
Searches at the company’s premises revealed unaccounted financial transactions running into several crores of rupees. Investigators further found that Arpik Pharmaceuticals allegedly operated in tandem with its associate firm, Idhika Life Sciences, to sustain an illicit supply chain.
Coordinated Raids Across Multiple States
ED teams carried out synchronized searches across cities in Uttar Pradesh, Gujarat and Jharkhand, indicating the inter-state scale of the network. Officials say the syndicate exploited pharmaceutical supply chains, distributor networks and fake billing mechanisms to move both drugs and money seamlessly across state borders.
“The structure resembles a corporate-style operation with clear roles, layered accounts and asset parking,” an official involved in the probe said.
Earlier Arrests and Continuing Hunt
The current ED action builds on arrests made earlier by Uttar Pradesh Police. On October 11, Deepak Manwani, a resident of Krishna Nagar in Lucknow, was arrested for the illegal sale of codeine-based syrups, tablets, capsules and injections. Two of his associates, Suraj Mishra and Pritam Singh, were later taken into custody.
Another accused, Arush Saxena, remains absconding. Police teams are actively searching for him, officials confirmed.
Investigation Likely to Widen Further
ED officials say the probe is still at a preliminary stage and is expected to widen significantly. More arrests, property attachments and financial disclosures are likely in the coming days as digital records, bank trails and corporate documents are analysed.
What began as a narcotics case has now evolved into a major investigation into organised crime, pharmaceutical misuse and large-scale money laundering, with central and state agencies maintaining close coordination as the crackdown intensifies.
