Inter-State Pharmaceutical Diversion Network Surfaces; Varanasi Drug Department Intensifies Crackdown
Varanasi- A major breakthrough has emerged in the ongoing crackdown on illegal trade of codeine-based cough syrup across eastern Uttar Pradesh. The Varanasi police and the Drug Control Department on Friday registered fresh FIRs against 12 additional pharmaceutical firms, all allegedly connected to the illicit network operated by Shubham Jaiswal, the suspected kingpin of the codeine diversion racket.
With these names added, the Special Investigation Team (SIT) has now identified a total of 40 firms that appear to be part of a wider inter-state narcotic supply chain spreading from Varanasi to several neighbouring states.
The FIRs were lodged based on a complaint filed by Drug Inspector, who highlighted grave discrepancies—ranging from missing stock, fabricated billing, and licensing violations to large-scale diversion of scheduled drugs. Officials assert that the Jaiswal cartel engineered a sophisticated system of bogus firms and inflated invoices to camouflage illegal distribution of codeine syrup in bulk.
Twelve Firms Named in the Latest FIR
Ongoing surveillance and surprise inspections over several weeks uncovered irregularities serious enough to trigger criminal proceedings. The twelve firms named in the new FIR include:
- Radhika Enterprises, Prashant Upadhyay — Mahmoorganj
- Shrihari Pharma & Surgical Agency, Amit Jaiswal — Kazipura Road
- Vishwanath Medical Agency, Vishal Sonkar — Khojwa
- Saumya Medical Agency, Sachin Pandey — Garhwasi Tola, Chowk
- Shri Ram Pharma, Ghanshyam — Khojwa Bazar
- Khatu Pharma, Abhinav Yadav — Nawabganj
- Kalbhairav Traders, Badal Arya — Hukulganj
- Vindhyavasini Traders, Sachin Yadav — Hartirath
- Shyam Pharma, Rahul Jaiswal — Paigambarpur, Sarnath
- VSM Pharma, Himanshu Chaturvedi — Gai Ghat
- Purn Pharma, Pooja Tiwari — Nichibagh
- Medrimedi Life Care Pvt. Ltd., Aakash Pathak — Golghar
Investigators claim that several of these entities either sourced unusually large quantities of codeine syrup or maintained incomplete, doctored or missing stock registers. Many also exhibited suspicious purchasing patterns that directly linked them to Shubham Jaiswal’s firm, Shaily Traders, already under scrutiny.
SIT Uncovers an Organised, Multi-State Drug Supply Chain
According to SIT sources, the Jaiswal network expanded quietly over the last two years through a mix of shell companies, forged documents, and rented licences. The operational pattern revealed so far includes:
- Mass procurement of codeine-based syrup through multiple front firms
- Fictitious billing to cover up large-scale diversion
- Issuance of fake invoices to destroy the trail
- Procurement of low-cost stock, later sold at double or triple rates in the black market
- Dispatch of consignments mislabelled as general goods instead of scheduled drugs
Officials believe that large consignments originating from Varanasi were regularly routed to Bihar, Jharkhand, Madhya Pradesh and Chhattisgarh, using both transporters and private courier services. SIT sources say the supply chain was “tight, layered and deliberately fragmented” to avoid detection.
40 Firms Under Scanner; More Action Expected
So far, around 40 firms have been categorised as suspicious based on irregular transactions and unexplained stock deficits. According to officials, the next phase of action may include:
- Suspension or cancellation of several drug licences
- Initiation of property attachment proceedings against key operatives
- Detailed forensic testing of seized drug samples
- Examination of potential official complicity within local administrative bodies
Authorities are also reviewing bank records, GST filings and transport logs to determine the full financial scale of the racket.
Growing Unease Among Pharma Traders
The ongoing crackdown has generated significant unease in Varanasi’s pharmaceutical and wholesale drug markets. Several traders have begun updating their records and reconciling stock in anticipation of fresh inspections. According to senior officers, these FIRs represent only “the tip of a much larger network” and more arrests are expected soon.
As enforcement agencies tighten their grip, the once-flourishing illegal codeine trade linked to the Jaiswal network appears to be rapidly unravelling. Officials suggest that the investigation may soon extend beyond Uttar Pradesh, signalling a larger nationwide enforcement operation.
