SIT arrests seventh accused in fake medicine racket; Chennai link under scanner
The Special Investigation Team (SIT) probing an alleged inter-State fake medicine manufacturing and distribution racket on Tuesday arrested a seventh accused, Balasubramanian, in Chennai, adding a fresh layer to the network said to be operated by prime accused Prashanth. The arrest comes as investigators widen their focus from alleged suppliers and distributors to hospitals and pharmaceutical entities that may have sourced the drugs.
Arrest in Chennai ties to prime accused
A team of SIT officials apprehended Balasubramanian in Chennai, acting on information obtained during the interrogation of Prashanth, who remains in police custody. According to investigators, Balasubramanian is suspected of operating as the proprietor or director of a dummy company allegedly floated to facilitate Prashanth’s network and the distribution of spurious medicines.
SIT sources said Balasubramanian allegedly received consignments from Prashanth and another accused, Veeresh, and supplied them in and around Chennai and to other locations within his distribution network. Investigators are now scrutinising the company’s financial transactions, the movement of consignments, and the identities of other individuals believed to be part of the inter-State supply chain.
“Information provided by Prashanth during interrogation helped investigators identify Balasubramanian and trace his role in the network,” an SIT source said. The source added that more individuals are suspected to be involved, and efforts are ongoing to identify and locate them.
Focus on procurement, repackaging and distribution
The SIT’s probe has broadened to examine how the alleged racket procured spurious medicines, repackaged them, and distributed the products through multiple entities. Investigators are working to map the entire chain of operations, including the sourcing of the drugs, the repackaging processes used, and the relabelling practices that allegedly enabled the products to enter the market.
Officials are also analysing statements from six accused persons arrested earlier in the case. According to investigators, those statements consistently point to Prashanth as having overseen key aspects of the operation, including procurement, distribution and the relabelling of medicines. Prashanth is being questioned further on these points as the SIT seeks to clarify how responsibilities were assigned within the network and to establish a comprehensive timeline of activities.
Hospitals under scrutiny for possible compliance lapses
As the investigation progresses, the SIT has turned its attention to hospitals that allegedly purchased medicines supplied through the racket. Sources said several hospitals in Bengaluru received the products and have now been issued notices seeking detailed records and explanations regarding their procurement decisions.
Investigators are examining whether the hospitals were aware of the nature and source of the medicines and whether any rules or mandatory procedures were violated during procurement. The SIT is specifically looking at the circumstances under which certain purchases were made at comparatively lower prices and whether due diligence protocols were followed before the drugs were received and administered.
Parallelly, the Drugs Control Department has sought assistance from the Union government to examine regulatory measures, including possible price caps, to limit vulnerabilities in the supply chain that could be exploited by illicit operators, sources said.
Distribution network traced beyond Karnataka
Investigators believe the distribution network extended beyond Karnataka and are actively tracing the supply routes to identify additional dealers, distributors and purchasers linked to the alleged racket. Pharmaceutical companies have been summoned for questioning to determine whether any of them, knowingly or unknowingly, were drawn into the distribution chain and to understand what safeguards, if any, may have failed.
The SIT is also not ruling out the possibility of an international dimension to the case. Officials are examining the prime accused’s overseas connections and financial and business links to ascertain whether any part of the operation was directed or facilitated from abroad.
Next steps in the investigation
With Balasubramanian’s arrest, the SIT is expected to deepen its financial forensics, mapping money flows tied to the alleged dummy company and any associated entities. Investigators are correlating statements from multiple accused with digital evidence and transaction records to determine each participant’s role—particularly in sourcing, repackaging, relabelling and distribution.
As part of the widening probe, more individuals and organisations may be called in for questioning. The SIT has indicated that efforts are underway to identify additional members of the network and to understand how the alleged counterfeit medicines moved across State lines and into hospital supply chains.
Significance
The Chennai arrest underscores the expanding scope of the SIT’s inquiry into an alleged inter-State racket with potential public health ramifications. By following the trail from suspected manufacturers and distributors to end purchasers, including hospitals, investigators aim to determine the full extent of the operation, ensure accountability across the supply chain, and prevent similar breaches in the future.
