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Unanswered questions loom as Pondicherry refers multi-crore counterfeit medicine racket to CBI and NIA
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Peethaambaran Kunnathoor, Chennai
December 30 , 2025
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As the Government of Pondicherry has officially handed over the massive counterfeit medicine scandal to the Central Bureau of Investigation (CBI) and the National Investigation Agency (NIA), the focus of the probe is shifting from the initial arrests to a series of alarming, unanswered questions.
While the arrest of the alleged kingpin, Raja, and a former Indian Forest Service officer, G. Sathiyamoorthy, has provided a face to the racket, investigators and the public are now grappling with how such an expansive, multi-state operation could function in plain sight. Specifically, authorities must now explain how a network operating from unlicensed premises managed to procure restricted active pharmaceutical ingredients (APIs), hire highly skilled manpower, and execute a nationwide marketing strategy that infiltrated government hospital supply chains, all while allegedly importing materials from abroad without a single red flag from local regulatory bodies.
During the inspections, the drugs inspector uncovered severe statutory violations, including the stocking of drugs without valid licenses and the possession of expired or counterfeit medications. The crackdown resulted in the immediate cancellation of licenses for six established pharmaceutical firms, including Lorven Pharmaceuticals Pvt Ltd, Sri Amman Pharma, Meenakshi Pharma, New Jersy Lifecare Pharma, Parm House, and Srisun Pharma. Several of these facilities were not only stripped of their operating permits but were also physically seized and sealed to halt further unauthorized activity.
According to sources, the operation extended deep into industrial zones, where authorities discovered a network of unlicensed godowns. In the PIPDIC industrial estate of Mettupalayam, multiple unnamed warehouses and facilities like Ambal Golden Capsules and Golden Capsules were found operating outside the law. These premises were sealed after investigators found they had violated Section 18(c) of the Drugs and Cosmetics Act, 1940, which governs the manufacture and sale of drugs.
To ensure the safety of existing stock, the department seized a vast array of finished products, raw materials, and manufacturing equipment. A total of 15 formulations and 20 APIs were collected as samples and dispatched to the Central Drugs Testing Laboratory (CDTL) in Chennai. These materials are currently undergoing intensive analysis to determine if they meet mandatory quality and safety standards.
When contacted, the Drug Controller of the Union Territory, Dr. E. Anandakrishnan, stated that the department of drugs control has issued a nationwide alert regarding the suspected spurious drugs in a move to protect the wider public. While no supply was detected in the Yanam or Mahe regions, a distribution chain was identified and frozen in Karaikal. In Pondicherry, two wholesale agencies were served with show-cause notices and ordered to stop all sales immediately after verification efforts identified them as part of the suspect network.
Furthermore, the regulatory body has mandated strict new protocols for all healthcare providers and pharmacies across the territory. An order issued following the crackdown requires wholesalers, retailers, and hospital pharmacies to carry out 100 per cent sampling and testing of all drugs before they are released to the public. Additionally, a new pharmacovigilance system has been launched, featuring QR codes in pharmacies to allow citizens to quickly report any adverse drug reactions.
Dr. Anandakrishnan reaffirmed the department's commitment to public health, warning that any retail pharmacy found in violation will face immediate license suspension or cancellation. People are being urged to cooperate with authorities by reporting illegal drug sales through official landlines or dedicated WhatsApp numbers. Legal proceedings, including criminal prosecution and heavy penalties, are now being initiated against the parties responsible for these violations.
The political fallout has been equally significant, with opposition leaders alleging that the network enjoyed protection from high-ranking political figures. These claims suggest that illegal factories operated with impunity and even managed to infiltrate government hospital supply chains through official tenders.
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