ED conducts multi-state raids in cough syrup drugs case; nabs 2 NCB accused
New Delhi (PTI): The Enforcement Directorate on Monday said it has seized cash and jewellery worth Rs 2 crore and apprehended two accused wanted in a drugs case by the NCB during recent searches conducted in some northern states and the Union Territory of Jammu and Kashmir.
The raids were undertaken on February 13 in Jammu and Kashmir, Delhi, Himachal Pradesh and Haryana in the case related to Raees Ahmed Bhat and others who allegedly indulged in "unauthorised sales and diversion of Codeine-Based Cough Syrup (CBCS) and associated illicit monetary gains."
The money laundering probe stems from a complaint filed by the Narcotics Control Bureau (NCB) into a case of CBCS trafficking which is widely abused as an intoxicant by drug addicts.
Cocrex, a cough syrup brand, was procured "unauthorisedly" from its manufacturer Vidit Healthcare in Sirmaur, Himachal Pradesh, whose managing partner is Neeraj Bhatia, a resident of Panipat in Haryana.
The syrup was "diverted" and sold via "shell" entities like S S Industries, Faridabad (owner Sumesh Sareen) and N K Pharmaceuticals, Kansal Pharmaceuticals, Kansal Industries and others "controlled by" Niket Kansal and his family members, residents of Delhi along with their "accomplice" Garv Bhambhari (lives in Faridabad), the ED alleged in a statement.
The agency claimed its probe found that between 2018-24, Kansal Industries, Kansal Pharmaceuticals, N K Pharmaceuticals, Nouveta Pharma and S S Industry were procuring the cough syrup from Vidit Healthcare and distributed them in an "unauthorised" manner.
"The licenses of many of such entities were cancelled by drug controlling authorities. Between 2019-25, around 55 lakh bottles of CBCS were procured by N K Pharmaceuticals and other such entities against payment of more than Rs 20 crore to Vidit Healthcare.
"The same were suspected to have been diverted in the open market, generating huge amounts of proceeds of crime, with major part as cash deposits and other related bank transactions, into such entities," the ED said.
The accused individuals and the companies could not be immediately contacted for their response to these charges made against them by the ED.
The agency said "unexplained" cash of Rs 40.62 lakh, jewellery worth Rs 1.61 crore and documentary and digital "evidence" were seized during the searches.
Two accused -- Garv Bhambhari and Mamta Kansal (mother of Niket Kansal) -- who are "absconding" in the NCB case were also traced and the information was shared with the anti-narcotics agency, it said.
These categories of cough syrups, including one with the brand name Phensedyl, are seized in huge numbers by the Border Security Force (BSF) and other agencies while they are being smuggled to Bangladesh from India.
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ED arrests Sandeepa Virk, 'cosmetologist' for alleged money laundering
New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.
The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.
Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.
A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.
She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.
According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.
The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.
She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.
"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.
The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.
The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.
The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.
Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.
Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.
A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.
"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.
Another social media-hosted bio data of the woman said she is a certified cosmetologist.
The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.
The money-laundering case stems from an FIR lodged by the Punjab Police.
Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.
