The Enforcement Directorate (ED) has stepped up its crackdown on the illegal trade of codeine-based cough syrup, shifting its focus to uncovering the financial backbone of a transaction estimated at nearly ₹100 crore, officials familiar with the probe said.
Investigators are examining how such a large sum was mobilised for the procurement of a massive stock of cough syrup, allegedly ordered by key accused Shubham Jaiswal from a Delhi-based pharmaceutical company. The consignment, sources said, was later sent back by a distributor in western Uttar Pradesh after it failed to reach the intended market, triggering suspicions about the origin and movement of the funds used in the deal.
According to officials, the ED is probing whether the payment was arranged through proxy entities or supported by an organised crime network. As part of this exercise, the agency has begun discreet verification of assets and financial records linked to suspected syndicate members. A high-end residential property valued at over ₹50 crore is among the assets currently under review.
Parallelly, the ED is mapping the financial network around Jaiswal by scrutinising more than 70 bank accounts held by him and his close family members. Several of these accounts had earlier been frozen due to unusual cash flows, and investigators are now seeking complete transaction data to establish links with the alleged narcotics trade.
The probe has also flagged irregular documentation linked to Shaili Traders, a firm run by Jaiswal’s father. Officials found that contact details used for regulatory registrations were allegedly connected to individuals with political associations, prompting investigators to examine possible influence or protection networks. Inputs from the Income Tax Department show that Jaiswal reported substantial tax payments over the past two years, figures that are now being cross-checked with GST filings and business activity.
ED officials are further analysing the role of a chartered accountant who audited multiple firms connected to the accused, including two entities through which significant tax payments were routed in recent financial years. Relevant financial documents have been seized and are being examined for inconsistencies.
The investigation has also led to the identification of several premium properties across eastern Uttar Pradesh, allegedly acquired in the names of Jaiswal, his relatives, and associated entities. Bank accounts and firms linked to extended family members are also being reviewed as part of the widening probe.
In a significant development, the agency has opened a separate line of inquiry into the assets and conduct of a former senior drug control official. The official is suspected of facilitating large-scale procurement and regulatory approvals that enabled the expansion of the illegal syrup trade. Law enforcement agencies are reportedly tracking the official, who is currently untraceable, amid suspicions that his network helped extend the racket’s reach beyond state borders.
