BENGALURU: The probe into the fake medicine racket has revealed that spurious medicines were allegedly distributed along with genuine ones to hospitals and pharmacies through DM Pharma, a pharmaceutical distribution company, to avoid suspicion.
According to officials of the Special Investigation Team (SIT), Prashanth Rajanbabu, the kingpin, had worked as a medical representative for more than 10 years in various cities, including New Delhi, Hyderabad and Chennai.
During this period, he gained extensive knowledge of the pharmaceutical industry and its operations, including the demand for certain medicines in hospitals, their market prices and profit margins.
In 2021, he established DM Pharma in Chennai with his wife and friend Balasubramanya as partners. The company supplied medicines to hospitals and pharmacies regularly.
The officials said that after noticing the growing demand for certain medicines and the potential to make huge profits, Rajanbabu allegedly started manufacturing spurious drugs.
He allegedly used labels and stickers resembling those of genuine pharmaceutical companies to avoid detection. Accordingly, he leased a farmhouse near Tavarekere in Bengaluru South district in 2025 and allegedly began manufacturing spurious medicines there. Raw materials for manufacturing medicines were allegedly procured from Uttarakhand and other states.
The officials revealed that spurious medicines with labels of popular pharmaceutical companies, including an Australian firm, were supplied to hospitals and pharmacies in the city through several companies, including Krupa Pharma.
Details from hospitals sought
The SIT will also question the officials of hospitals that purchased medicines from the accused. They said the hospitals have been issued notices seeking details and explanations regarding their purchases. The investigation to track the supply chain involving dealers, distributors and purchasers is on. It will also examine the financial transactions of the accused. Recently, the Karnataka Food Safety and Drugs Administration (FSDA) cancelled the licenses of 16 pharmaceutical wholesalers and retailers. It also suspended the licenses of eight others, including pharmaceutical company Pfizer’s depot in Nelamangala, for their alleged involvement in distribution and sale of spurious drugs.
Kingpin’s close aide held
The SIT officials arrested a close aide of kingpin Prashanth Rajanbabu in Chennai on Tuesday in connection with fake medicine racket. The accused has been identified as Balasubramanya. The officials revealed that Balasubramanya and Prashanth’s wife owned DM Pharma. After his arrest, Balasubramanya was brought to Bengaluru for questioning. On Monday, Rajanbabu, who hailed from Shivamogga and lived in Papareddypalya in Bengaluru, was arrested on his arrival at Kempegowda International Airport.
