During recent raids in several northern states and the Union Territory of Jammu and Kashmir, the Enforcement Directorate claimed Monday that it has captured two suspects sought in a narcotics investigation by the NCB and confiscated cash and jewelry valued at Rs 2 crore.

In the case involving Raees Ahmed Bhat and others who reportedly engaged in “unauthorized sales and diversion of Codeine-Based Cough Syrup (CBCS) and associated illicit monetary gains,” searches were conducted on February 13 in Jammu and Kashmir, Delhi, Himachal Pradesh, and Haryana.

The Narcotics Control Bureau (NCB) submitted a complaint into a case of CBCS trafficking, which is often misused by drug users as an intoxicant, which is the basis for the money laundering investigation. The cough syrup brand Cocrex was purchased “unauthorizedly” from Vidit Healthcare, a company based in Sirmaur, Himachal Pradesh, whose main partner is Neeraj Bhatia, a Hanyana native from Panipat. The ED claimed in a statement that the syrup was “diverted” and sold through “shell” companies such as S S Industries, Faridabad (owner Sumesh Sareen), N K Pharmaceuticals, Kansal Pharmaceuticals, Kansal Industries, and others “controlled by” Delhi-based Niket Kansal and his family members, as well as their “accomplice” Garv Bhambhari, who resides in Faridabad.

According to the agency’s investigation, between 2018 and 2024, Kansal Industries, Kansal Pharmaceuticals, N K Pharmaceuticals, Nouveta Pharma, and S S Industry purchased cough syrup from Vidit Healthcare and distributed it in an “unauthorized” way; many of these companies’ licenses were revoked by drug regulations. About 55 lakh bottles of CBCS were purchased by N K Pharmaceuticals and other similar organizations between 2019 and 25 in exchange for more than Rs 20 crore from Vidit Healthcare.

According to the ED, “the same were suspected to have been diverted in the open market, generating huge amounts of proceeds of crime, with a major part as cash deposits and other related bank transactions into such entities.” It was not possible to get in touch with the accused people or the businesses right away to ask them to respond to the accusations the ED brought against them.

According to the agency, during the searches, “unexplained” cash totaling Rs 40.62 lakh, jewelry valued at Rs 1.61 crore, and digital and documentary “evidence” were found.