Cough Syrup Racket Busted: 5 Arrested, Rs 40 Crore Hawala Network Unearthed

Varanasi: Police in Uttar Pradesh’s Varanasi have arrested five accused in connection with the illegal cough syrup racket, uncovering a major hawala network allegedly linked to the syndicate, officials said on Saturday.

According to sources, all five arrested individuals have direct or indirect links to Shubham Jaiswal, who is believed to be the mastermind behind the operation. Investigators claim the syndicate routed large sums of illegal proceeds through hawala channels using cash and gold transactions.

The probe has revealed that the illicit money was funnelled into more than 50 shell companies, with transactions amounting to approximately Rs 40 crore. Police officials said these shell firms were used to launder funds generated from the illegal sale and distribution of cough syrup.

Investigators have also found that the hawala network operated using coded language to avoid detection. Decoding of seized ₹10 currency notes and code words such as “blue” and “yellow” is currently underway, sources said, adding that these codes were allegedly used to track and verify transactions.

Authorities believe that Shubham Jaiswal is currently based in Dubai. Steps are being taken to initiate further legal action against him, including coordination with central agencies.

Police have also begun the process of seizing assets worth nearly Rs 38 crore belonging to Shubham Jaiswal and his family members, officials said.

The arrests mark a significant breakthrough in the case, which has been under investigation following inputs about the large-scale illegal circulation of cough syrup with suspected international and financial crime links. Further arrests are likely as the financial trail is examined in detail, sources added.

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