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Rs 5 crore spurious drug racket unearthed in Karnataka; Health Minister seeks interstate probe

Bengaluru, August 19, 2026 (Yes Punjab News)

A suspected spurious drug racket involving medicines allegedly repackaged under the labels of multinational pharmaceutical companies has been uncovered in Karnataka’s Ramanagara district, with medicines worth more than Rs 5 crore seized, Health Minister U.T. Khader said on Wednesday.

Khader said the preliminary investigation had indicated possible links to counterfeit drug manufacturing units in Telangana, Himachal Pradesh and other parts of the country, prompting him to call for a coordinated interstate probe.

The racket came to light after beat police personnel alerted authorities on Tuesday evening. Drug Control Department officials and personnel from the Commissionerate of Food Safety and Drug Administration subsequently raided a farmhouse in Bidadi, where the suspected spurious medicines were allegedly stored and repackaged before being supplied to hospitals and pharmaceutical outlets.

One accused, identified as Prabhudev, has been arrested. Ramanagara police are investigating the case and questioning him to establish the wider supply chain.

Khader said the accused allegedly procured medicines at very low prices and relabelled them using the names of multinational pharmaceutical companies before supplying them to medical establishments.

“Even tablets used in ICUs are being faked and labelled with multinational companies’ names,” Khader said, adding that an injection costing around Rs 20,000 was allegedly supplied to hospitals for Rs 5,000-Rs 6,000.

The minister said the premises where the medicines were stored was operating without a valid licence. Investigators are also examining whether the labels and stickers used on the suspected fake medicines were manufactured locally or sourced elsewhere, including the possibility that they were obtained through hospitals.

According to Khader, the suspected network involves multiple stages, including procurement of medicines and raw materials, logistics, repackaging, distribution and supply. Authorities are now trying to identify middlemen as well as hospitals and medical shops that may have received the medicines.

He said the alleged main accused, Prashanth, is believed to be based in Dubai, while Tejas has reportedly been handling operations on the ground.

Khader said he had spoken to the Union Health Minister and the Home Ministry and would seek a joint investigation by the Health and Home departments. He also plans to discuss the matter with Karnataka Home Minister Priyank Kharge and seek the formation of a Special Investigation Team to examine the alleged interstate and international links.

The minister said investigators would have to establish the origin of the medicines, the logistics network, intermediaries and the hospitals and outlets that purchased them. Establishments that procured medicines at unusually low prices could also come under scrutiny.

Khader praised the officials involved in the raid and said the government would consider rewarding personnel who helped uncover the racket.

“This is not limited to Karnataka. Such factories may be operating across the country. We need a separate and coordinated investigation considering the logistics, supply chain and consumers,” he said.

Further details are expected as the Ramanagara police investigation progresses.

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