The Central Bureau of Investigation (CBI) has arrested three pharma traders from Chennai for allegedly running an import racket of spurious drugs from China. K Ram Lal Jain and K Parasmal Jain of Kawarlal & Company and K Kuppusamy, managing partner of International Exim Agency are the traders arrested by the agency, following complaints from Central Standard Drugs Control Organization (CDSCO).

Speaking to Pharmabiz, R K Gaur, press information officer from CBI, New Delhi said that the agency had received specific complaints from the CDSCO regarding the import and illegal sale of spurious bulk drugs from China by two importers in Chennai and one in Bangalore. The officer said the investigating agency has registered cases against the three businessmen after arresting them.

When contacted for more information about the cases, the assistant drug controller, CDSCO Chennai, Shanthy Gunasekaran, declined to respond.

According to information from CBI sources, 1000 Kg Tranexamic Acid originally imported by a Chennai based company and later sold on high sales to another company in Chennai (1st case) was found spurious. Further 1000 Kg Azithromycin imported by one Chennai based company (2nd case) and 100 Kg Diphenhydramine Hydrochloride BP imported by one Bangalore based company (3rd case) were also found spurious as they were not manufactured by the declared manufacturers in China.

The Drugs Control authorities in Chennai found that the documents filed by the importers through a private agency of Chennai was fake and the certificate of Analysis, Batch Release Certificates and even e-mail communication purported to have been sent by the exporters were forged and not originated from the claimed manufacturers. It was further alleged that the Indian importers in collusion with the Chinese exporters committed offences punishable under the Drugs & Cosmetics Act., 1940, Indian Penal Code and Customs Act., 1962.

After receiving complaints from CDSCO officials, the CBI conducted simultaneous searches at 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, 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 and the documents are under scrutiny.