Pharma bizman to prime suspect in multi-crore codeine racket: Who is Shubham Jaiswal?

“He bought cough syrup stock worth around Rs 100 crore and routed most of the stock to Bangladesh and Nepal by falsely recording sales in UP and other places using fake bills and a maze of shell firms,” a police officer said.

Shubham has now emerged as one of the prime suspects in what UP Police have called a multi-crore racket that allegedly involved the illegal storage, distribution and sale of codeine-based cough syrups (CBCS) — available only on prescription — and other narcotic medicines to multiple states and across the border. 

Believed to have fled to Dubai with his wife, Shubham has moved the Allahabad High Court, seeking the quashing of the FIR against him. The High Court is set to hear the matter on Wednesday.

Recently, a video purportedly featuring Shubham went viral on social media, in which he claimed he had been falsely implicated and that misleading information was being circulated about him in the media. He appealed to Chief Minister Yogi Adityanath to ensure a fair and impartial investigation, maintaining that his business activities were conducted within the framework of the law. He also denied having any connection with the other arrested accused or links with political figures.

His father, Bhola Prasad Jaiswal, was arrested on November 30 in Kolkata by Sonbhadra Police, while he was allegedly attempting to flee the country.

According to investigators, he told them that Jharkhand operations were being handled entirely by Shubham.

“The father claimed that he was merely a signing authority for the firm and denied having any knowledge of the day-to-day activities or the illegal dealings of his son,” Superintendent of Police, Sonbhadra, Abhishek Verma said.

How did Shubham’s name crop up?

In February last year, the government constituted a joint investigation team comprising the Special Task Force (STF) of the UP Police and Food Safety & Drug Administration Department to probe into cough syrup and other codeine-based medicines being traded as intoxicants, and smuggled to states, including Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Assam, West Bengal, as well as across the border to Bangladesh and Nepal.

The joint probe team zeroed in on Vibhor Rana, one of the alleged ‘super distributors’ who ran a firm in Saharanpur. Officials said he came under scrutiny after the joint team began intercepting consignments of cough syrup that were allegedly being routed through Saharanpur to West Bengal and further to Bangladesh.

Tracing Rana’s network led investigators to Shubham Jaiswal, who used to allegedly procure medicines from him earlier.

Police filed the first FIR in the case on October 18 this year after two trucks, carrying over 1 lakh bottles of CBCS, were impounded in Sonabhada. Three people were arrested on the spot, and Shubham and his father were named as accused.

Subsequently, raids were carried out in Ghaziabad, leading to the seizure of over 1.5 lakh more bottles of CBCS, and eight more people were arrested.

However, it was not until November of this year when Rana’s arrest led to the unraveling of the network.

More cases were filed in other districts as the scope of the alleged racket emerged. Shubham now faces cases lodged in Varanasi, Sonbhadra, Ghazipur, Ghaziabad, and Chandauli.

Police said that barring the cough syrup case, no criminal case is pending against Shubham in Varanasi.

The modus operandi

Police said Shubham adopted Rana’s strategy and opened Saili Traders in Ranchi, and became a super distributor of medicines. Investigators claimed this move was strategic as the syrup purchased by Shubham was allegedly sent directly from the manufacturing unit to Jharkhand, from where it was further dispatched to Bangladesh and other places.

The arrest of dismissed constable Alok Singh and Amit Singh alias Amit Tata, said police, gave an insight into Shubham’s modus operandi. “During questioning, Alok Singh said Shubham and his business partners had allegedly set up numerous fake firms and generated forged invoices and e-bills for cough syrup. The diverted stock was then sold to traffickers, generating substantial profits for the group,” a police officer said.

At a recent press conference, when Director General of UP Police Rajeev Krishna announced the setting up of an SIT to probe into illegal cough syrup trade, had said that three of the five main accused have been arrested — Bhola from Varanasi, Rana from Saharanpur, and Saurabh Tyagi from Ghaziabad.

The entry of the ED

Last week, the Enforcement Directorate (ED) conducted searches as part of its money laundering probe into the racket.

Officials said raids at Shubham’s residence and business establishments in Varanasi and Jharkhand have led to the recovery of several documents allegedly related to shell or bogus firms used for stocking and smuggling cough syrup.

The ED has summoned Shubham in connection with the case.

Sources said the ED is also examining the suspected purchase and gifting of luxury vehicles by Shubham to reward associates and conceal the origin of funds. It is learnt that vehicles were bought through a showroom in eastern Uttar Pradesh. Sources said the agency has sought details of vehicles purchased over the last two years.

So far, UP Police have arrested over 30 people and raided 332 firms across 52 districts, while FIRs have been lodged against 133 firms in 31 districts in connection with the racket