CBI arrests 3 businessmen for fake drugs import from China

"Two Proprietors and one Managing Partner of Chennai based companies have been arrested at Chennai. The arrested persons are being produced today in the designated court," a CBI spokesperson said in a press release here.
The agency registered cases against K Ram Lal Jain and K Parasmal Jain of Kawarlal and Company and K Kuppusamy, Managing partner of International Exim Agency after arresting them. It also booked a Bangalore-based Adcock Ingram Limited company.

The spokesperson said it was alleged that 1,000 kg Tranexamic Acid originally imported by a Chennai-based company and later sold on high sales to another company were spurious.
"1,000 Kg Azithromycin imported by Chennai-based company 100 kg Diphenhydramine Hydrochloride BP imported by Bangalore based company were found spurious as they were not manufactured by the declared manufacturers in China," he said.

The CBI has registered cases after receiving specific complaints from the Assistant Drugs Controller, Central Drug Standard Control Organisation, Health Ministry, he said.
Fake drugs getting into the country every year are estimated to be in the range of a whopping Rs 15,000 crore to Rs 17,500 crore.

The official alleged drugs control authorities at Chennai found that the documents filed by the importers through a private agency of Chennai (Customs House Agent) and even e-mail communication purported to have been sent by the exporters were forged and not originating from the claimed manufacturers.

"It was further alleged that the Indian importers in collusion with the Chinese exporters committed offences punishable under the Drugs and Cosmetics Act, 1940, Indian Penal Code and Customs Act, 1962," the spokesperson said.
He said simultaneous searches of six premises at Chennai and one at Bangalore, including the offices, godown and residential premises of proprietors and a private agency at Chennai and a private firm at Bangalore, were conducted in which several incriminating documents were recovered.

"The original documents relating to the imports made by the Chennai importers filed with the Customs and returned to the Customs House Agent (CHA) with the objections were recovered during the searches. The documents are under scrutiny," he said.
The CBI has earlier registered cases against Mumbai and Gujarat-based companies for allegedly importing spurious drugs in large quantities from China.
The agency had claimed that drugs were imported through China and Hong Kong-based companies which included Progesterone (used for gynaecological problems), Roxithromycin (antibiotic), Cimetidine (used for ulcer) and Cefotaxime Sodium Sterile (used to treat various infections).