ED probes fake medicine racket’s foreign links

Bengaluru: The Enforcement Directorate (ED) has expanded its investigation into the fake medicine racket unearthed at Tavarekere on the outskirts of Bengaluru, focusing on the alleged international financial transactions and overseas connections of the prime accused.

According to a report the agency is examining the foreign links of R. Prashanth, alias Prashanth Rajan Babu, particularly his alleged connections in Turkey, Azerbaijan and the United Arab Emirates (UAE), including Sharjah. The racket came to light on August 18, following which the Karnataka Special Investigation Team (SIT) launched a separate probe. The ED subsequently initiated an investigation under the Prevention of Money Laundering Act (PMLA).

As part of its investigation, the ED recently conducted fresh searches and seized around Rs 9 lakh linked to Veeresh Kumar Jain, owner of Krupa Healthcare near Minerva Circle in Bengaluru. Investigators are examining whether Prashanth travelled to Turkey to procure labels associated with expensive pharmaceutical brands.

The possibility of an extensive network of intermediaries facilitating the operation is also being investigated.

The agency is reportedly examining whether counterfeit QR codes, stamps and labels bearing the names of international pharmaceutical brands were used to market ordinary medicines as expensive branded drugs. rashanth’s alleged business activities during his stay in Azerbaijan and his travel and contacts in Sharjah are also under scrutiny.

The ED is tracing the proceeds generated through the racket, including possible investments in properties, shell companies and benami assets.

Further examination under the Foreign Exchange Management Act (FEMA) is also possible. The SIT had arrested Prashanth in September after he allegedly went into hiding in Azerbaijan.