Fake bills, proxy firms, cross-border trade: How UP’s multi-crore cough syrup syndicate operated

How did the racket come to light?

In February last year, the state government ordered a joint inquiry by the Food Safety and Drug Administration (FSDA) and the Special Task Force (STF) into allegations that cough syrup and other codeine-based medicines were being illegally stored, and smuggled to different states and across the border to be sold as intoxicants.

Acting on key information from the Central Narcotics Bureau in Madhya Pradesh, drug inspectors then carried out detailed checks on two medicine manufacturers in Himachal Pradesh, three in Uttarakhand, a depot in Haryana, and the main stockist of a multinational company in Ranchi, Jharkhand.

Separately, the Drug Department carried out inspections at 279 establishments and officials seized important records related to the making, storage, buying, selling, and distribution of codeine-based cough syrup.

Inquiry also showed that the racket was widespread in Varanasi, Ghaziabad, and the surrounding regions, where the activity appeared to be organised and more frequent than in other districts.

How did it operate?

The crackdown began two months ago.

STF officials first tracked the racket to a company in Jharkhand that had allegedly purchased nearly Rs 100 crore worth of cough syrup from a manufacturer that has since ceased operations.

The syrup was then allegedly smuggled to Bangladesh via Jharkhand. It was also discovered that the company was reportedly run by a group of individuals from Uttar Pradesh.

Explaining the modus operandi, investigators said the firm falsely recorded sales in UP using fake bills and listing establishments that existed only on paper, effectively creating proxy transactions to mask the movement of stock.

In many cases, the required purchase and sale registers were missing, pointing to deliberate attempts to conceal the flow of stock.

Investigators believe large quantities of these diverted medicines were entering illegal trafficking networks. Misuse appeared particularly widespread along routes connecting Lucknow, Lakhimpur Kheri, and Bahraich, where supplies were suspected to be smuggled into Nepal. Similar patterns were observed in Varanasi and Ghaziabad, with trafficking routes reportedly extending towards Bangladesh.

Where does the probe stand now?

The UP Police filed the first FIR in the case on October 18 this year after stopping two trucks carrying over 1 lakh bottles of codeine cough syrup in Sonbhadra. Three people were arrested on the spot.

While questioning the accused, investigators got new information that suggested a bigger network was involved. These clues led the Ghaziabad Police to start a joint operation with the Sonbhadra Police.

Joint raids in Ghaziabad led to the seizure of over 1.5 lakh more bottles of syrup, and eight more people were arrested.

Police also identified five major stockists who were suspected to be key players in the illegal supply chain. Three of them — Bhola Jaiswal, Vibhor Rana, and Saurabh Tyagi — have been arrested.

In total, raids have been carried out on 332 firms across 52 districts and FIRs against 133 firms in 31 districts. The FIRs have been registered under various laws, including the NDPS Act. These include 38 cases in Varanasi, 16 in Aligarh, 8 in Kanpur, 6 in Ghaziabad, 4 each in Maharajganj and Lucknow, and 52 in other districts.

Is the case linked to the deaths of children due to toxic syrup in Madhya Pradesh?

Officials clarified that there is no link between the ongoing case in UP and the recent incident in Madhya Pradesh, where several children reportedly died after consuming toxic cough syrup. All districts in UP have confirmed that no deaths have occurred in the state in relation to the codeine-based syrups seized during the investigation.