Delhi Crime Branch Busted Rs 50 Crore Fake Medicine Racket; 6 Arrested, Illegal Factory Discovered

New Delhi: The Cyber Cell of Delhi Police’s Crime Branch has busted an interstate racket involved in the illegal sale of government hospital medicines and fake medicines, exposing a fake GST billing network worth nearly Rs 50 crore, authorities said on Sunday. 

Five accused have been arrested in connection with the racket, including an insider employed at a local hospital.

The operation began with a raid on March 11 in Shahdara, where police arrested Nikhil Arora, a wholesale drug dealer operating from Bhagirathi Palace. 

During the raid, officials recovered over 20,000 fake medicines, including drugs used for hypertension and anti-inflammatory treatments.

Investigations revealed that the gang systematically siphoned off life-saving drugs intended for patients receiving free treatment under government schemes to sell them for profit. 

During the crackdown, authorities recovered a substantial haul of medicines valued at approximately Rs 70 lakh.

Further investigation led to the arrest of Arora’s associates, Shivam Tyagi, Mayank Aggarwal, and Mohit Sharma, who were actively involved in the supply chain of the counterfeit drugs.

The seized inventory comprises several high-cost and critical drugs, including Meropenem, Ceftriaxone, and Rabies Antiserum. 

These medications are essential for treating severe conditions and are strictly designated for free distribution within the government healthcare system.

Police said Mohit Sharma revealed key information about an illegal pharmaceutical manufacturing unit in Roorkee/nearby region, following which a raid was conducted. 

The team seized around 2000 kg of raw materials, including Metformin HCL, lactose, calcium carbonate, and other chemicals, used in the production of fake medicines.

The manufacturing unit, spread across nearly 1000 square yards, was equipped with advanced machinery, including tablet compression machines, capsule filling units, coating and packing machines, indicating large-scale production.

In addition, Shahrukh and Rahul were also arrested for facilitating the racket by providing fake GST firms and billing services, which helped the accused generate fake invoices and launder money. 

Investigators found that these firms existed only on paper and were used to evade taxes and conceal illegal operations.

Police recovered a total of over 1.2 lakh counterfeit tablets and capsules, along with packaging materials of reputed pharmaceutical brands. 

The seized medicines were falsely labelled as well-known companies and later confirmed by drug authorities to be 100% counterfeit and not sourced from authorised manufacturers.

Officials said the racket operated through a multi-layered supply chain, linking illegal manufacturers, distributors, and fake GST operators, posing a serious risk to public health.

An FIR has been registered under relevant sections of the Drugs and Cosmetics Act, IPC, and the Trade Marks Act, and all accused have been arrested. Further investigation is underway to identify the broader network and dismantle the entire supply.

Also Read: 'My Duty, Soil, And Soul': Raghav Chadha Hits Back At AAP Allegations Over Punjab Issues In Parliament