From Gujarat to Mexico: How Indian pharma firms smuggled chemicals for fentanyl

Ahmedabad: A pharmacist and his associate, arrested by the Gujarat ATS earlier this year, had smuggled chemicals used in manufacturing the opioid fentanyl to Mexico in the name of “fish collagen peptides” and Vitamin B7, revealing India’s link to the highly addictive drug. 

The two managed to smuggle the chemicals at least four times, though they were intercepted by US customs; on one occasion, a consignment reportedly reached an agent in Guatemala, an ATS investigation has revealed.

In the US, fentanyl is considered the “deadliest drug threat”. The synthetic opioid is reported to be 50 times stronger than heroin and 100 times more potent than morphine.

The Gujarat ATS case is one of the few registered in India involving pharmaceutical firms smuggling fentanyl precursors. Officials said that it was one of the rare cases under narcotics where people have been booked on suspicion of smuggling. 

Earlier this week, the US embassy in New Delhi revoked visas of some Indian businessmen citing their alleged involvement in trafficking fentanyl precursors.

On March 22, the US Department of Justice indicted top officials of Hyderabad-based Vasudha Pharma Chem Pvt Ltd. They were charged with “manufacturing and distributing fentanyl precursor chemicals for unlawful importation into the United States, and attempting and conspiring to do the same”.

On March 18, ATS arrested Satish H Sutariya, the key partner of Surat-based firms—Athos Chemicals Pvt Ltd, Agrat Chemicals & Pharmaceuticals, and S R Chemicals & Pharmaceuticals, all based in Surat—along with his associate Yukta A Modi. A detailed chargesheet was filed recently against the duo.

They are accused of illegally procuring and exporting 1-Boc-4-piperidone (N-Boc-4-piperidone) and 4-piperidone, both precursors used in producing fentanyl, from various firms, including Vasudha Pvt Ltd, and smuggling them by misdeclaring the consignments.   

According to the chargesheet, Sutariya and Modi had shipped at least four consignments to Mexico using the same modus operandi, all of which were seized by US customs. At least one consignment reached an agent in Guatemala.

To evade detection, they declared the consignments as “Fish Collagen Peptides”, Vitamin B7, among others, it said. The two were arrested following nearly four months of authorised phone tapping. ATS monitored Sutariya, Modi, and several other associates. Their conversations revealed how systematically they ran the illicit trade without detection.

“...the accused Satish Sutariya and Yukta Modi, in collusion and with full knowledge, prepared bogus End-User Certificates in the name of Amino Organics and Vasudha Pharmachem Ltd. for the purpose of purchasing precursors required for the manufacture of the prohibited psychotropic substance fentanyl, and further attempted to export such precursors to Mexico and Guatemala,” stated the chargesheet.

It adds that the duo faked labels and prepared false invoices on precursor consignment meant for manufacturing fentanyl.  

Bhavesh Lathiya, who was arrested and indicted by the US government in January for trafficking similar substances, is allegedly associated with Sutariya through Athos Chemicals Pvt Ltd.

Reports by US intelligence agencies and indictment orders against Indian businessmen and pharma companies have identified India “as a key hub for exporting fentanyl precursor chemicals.”

These reports suggested China as a “primary source” and India as a “secondary supplier.”