Jammu, Feb 17: Directorate of Enforcement (ED), Jammu sub zonal office has conducted search operations in a case pertaining to unauthorized sales and diversions of Codeine Based Cough Syrup (CBCS) and associated illicit monetary gains.
The search operations, according to ED spokesperson, were conducted on February 13, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 at multiple locations in Jammu and Kashmir, Delhi, Haryana and Himachal Pradesh in the case of Raees Ahmed Bhat and Others in respect of various persons and entities indulged in the operation of unauthorized sales and diversions of CBCS and associated illicit monetary gains, in the form of Proceeds of Crime.
“ED initiated investigation on the basis of FIR registered by the Narcotics Control Bureau (NCB) Jammu, wherein Raees Ahmed Bhat was found involved in trafficking of CBCS, widely misused as intoxicant by drug addicts. CBCS brand named, “Cocrex”, from manufacturer, M/s Vidit Healthcare, Sirmaur, Himachal Pradesh (managing partner, Neeraj Bhatia, resident of Panipat, Haryana) was found procured, unauthorizedly diverted and sold via shell entities viz. M/s S S Industries, Faridabad (Owner Sumesh Sareen R/o Faridabad), and N K Pharmaceuticals, Kansal Pharmaceuticals, Kansal Industries and Others controlled by Niket Kansal, resident of Delhi and his family members with his accomplice, Garv Bhambhari resident of Faridabad,” spokesperson said.
ED investigation revealed that during 2018-24, M/s Kansal Industries, M/s Kansal Pharmaceuticals, M/s N K Pharmaceuticals, M/s Nouveta Pharma and M/s S S Industry were procuring CBCS from M/s Vidit Healthcare and indulged in unauthorized distribution of the same.
The licenses of many of such entities were also cancelled by drug controlling authorities.
During 2019-25, around 55 lakh bottles of CBCS were procured by N K Pharmaceuticals and other such entities, against payment of more than Rs 20 Cr to M/s Vidit Healthcare. The same were suspected to have been diverted in the open market, generating huge amounts of proceeds of crime, with major parts as cash deposits and other related bank transactions, into such entities.
The searches resulted in seizure of unexplained cash of Rs 40.62 lakh, jewellery worth Rs 1.61 Cr and various documentary and digital evidence.
“During the search operations, two accused persons, viz. Garv Bhambhari and Mamta Kansal (mother of Niket Kansal), who are absconding in the NCB case were also traced and the information was shared with NCB, for appropriate proceedings. Further investigation is under progress,” the spokesperson said.
