Delhi Police Uncovers GST Fraud Worth Rs 50 Crore Involving Fake Medicine Racket; Six Arrested

In a major crackdown, the Delhi Police on Sunday arrested six persons for their involvement in an interstate network selling fake medicines. The police also uncovered GST fraud worth Rs 50 crore and shell firms that were used to fake invoices.

A case has been registered against the accused persons under sections 318(4) (cheating), 336 (forgery), 340 (forging document), 275 (sale of harmful substance) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita and relevant sections of the Drugs and Cosmetics Act and the Trade Marks Act.

The operation started after a raid in Shadara on March 11, where the police had found more than 1.2 lakh counterfeit tablets and capsules. These fake medicines were being produced and distributed through an illegal pharmaceutical manufacturing unit in Muzaffarnagar, Uttar Pradesh. The seized drugs were commonly prescribed medicines for diabetes, hypertension, infections, inflammation, and liver disorders, making the case a serious public health concern.

The accused allegedly operated a fake GST billing system. The investigation revealed that the accused established shell companies, which only existed on paper, and generated fake invoices worth Rs 50 crore. This was done to hide the actual business operation and evade taxes.

The police arrested Nikhil Arora, alias Sunny, who was running a wholesale medical shop, Shyam Medicos.

Two other accused, named Shahrukh and Rahul, were handling this GST racket through apps like Telegram and WhatsApp. These fake firms acted as a support system for the fake medicine network.

The three arrested persons are being identified as Shivam Tyagi, Mayank Aggarwal and Mohit Sharma. They allegedly worked as a supplier.

The main person, Mohammad Aqdas Siddiqui, who operated the illegal manufacturing unit, is currently on the run.