FAKE GST FIRM NEXUS EXPOSED
Face2News/New Delhi
The Cyber Cell of the Crime Branch, Delhi Police, has successfully dismantled a highly organised interstate network involved in the manufacturing, storage, and distribution of spurious and counterfeit life-saving Schedule-H medicines, while also exposing a parallel racket of fictitious GST firms used for generating fake invoices and laundering illegal trade.
The operation resulted in the arrest of six accused persons, seizure of over 1.2 lakh counterfeit tablets/capsules, busting of an illegal pharmaceutical manufacturing unit, and unearthing of a ₹50 crore fake GST billing network.
The operation was conducted by a team led by Insp. Manjeet Kumar under the supervision of ACP Patil Swagat Rajkumar and overall guidance of DCP Sh. Aditya Gautam.
Initial Raid and Seizure
Acting on specific intelligence, a raid was conducted on 11.03.2026 at Bihari Colony, Shahdara, Delhi. During the raid, Nikhil Arora @ Sunny, operating a wholesale medical shop “Baba Shyam Medicos” at Bhagirathi Palace, was apprehended.
A total of 1,20,535 counterfeit tablets/capsules were recovered, including widely used medicines such as Rabemac-DSR, Telma-AM, Sporolac-DS, Signoflam, Chymoral Forte, Ursocol-300, CCM, Ketorol-DT, Gemcal, Gluconorm series, Jalra-50, Moxovas, Glycomet, Amlovas-AT, Disperzyme, Glimisave, Drotin-M, Naxdom-500, Bio-D3 Plus, Gabapin-NT, and Montair-LC.
These medicines are commonly prescribed for diabetes, hypertension, infections, liver disorders, and inflammation, posing a serious public health risk when counterfeited.
Fake GST Firms: Modus Operandi
A key highlight of the case is the exposure of a well-organised fake GST firm racket, which played a crucial role in facilitating the illegal drug trade.
• Counterfeit medicines were supplied using fake invoices generated through fictitious GST firms
These firms existed only on paper and were created to: * Conceal actual business operations *Evade tax and regulatory scrutiny* Provide legitimacy to illegal transactions*Payments and supply chains were routed through these entities to mask the origin and destination of spurious medicines
Two accused, Shahrukh and Rahul, were found to be operating this network through Telegram and WhatsApp, supplying ready-made GST firms and fake billing services.
Analysis of their mobile phones revealed: • Details of numerous shell GST firms• Fake invoices amounting to approximately ₹50 crore• Links to multiple beneficiaries across states
This GST racket acted as the financial backbone of the counterfeit medicine network.
Verification by Drug Authorities and Companies
Drug Inspectors from the GNCTD Drug Control Department, along with representatives of pharmaceutical companies, confirmed that:
• The seized medicines were 100% counterfeit • They were not manufactured or supplied by authorized companies• They were not sourced through legitimate distributors • The premises had no valid license for storage or sale
Pharmaceutical Brands Targeted
The counterfeit medicines were falsely branded under reputed pharmaceutical companies.
Arrests and Supply Chain Uncovered
During investigation, six accused persons have been arrested, namely Nikhil Arora (wholesaler) r/o Bihari Colony, Shahdara, Delhi, Shivam Tyagi (supplier) r/o Sihani, Ghaziabad, UP, Mayank Aggarwal (supplier) r/o Bagh Colony, Modi Nagar, UP, Mohit Kumar Sharma (key supplier from Uttarakhand) r/o Roorkee, Haridwar, UK. Shahrukh (fake GST firms’ providers) r/o Malik Nagar, Murad Nagar, UP, Rahul (fake GST firms’ providers) r/o Swaroop Nagar, Daulatpur, Delhi
Interrogation revealed a multi-layered supply chain linking distributors, GST operators, and illegal manufacturers.
Accused Mayank Aggarwal is previously involved in the following cases: Crime Complaint No. 34/2013 of Narcotics Control Bureau, India. FIR No. 04/2026 dated 03.01.2026, u/s 318(4)/336(3)/340(2)/ 274/ 276/ 65 BNS & Sections 18A/18B/27 of the Drugs and Cosmetics Act, PS Murad Nagar, Ghaziabad, U.P.
Manufacturing Unit Busted
At the instance of accused Mohit Sharma, a raid was conducted at an illegal pharmaceutical manufacturing unit in Muzaffarnagar, Uttar Pradesh, operated by Mohd. Aqdas Siddiqui (absconding). The unit, spread over approximately 1000 sq. yards, was engaged in large-scale production of counterfeit medicines.
Major recoveries include: Raw Materials (approx. 2000 kg):
Metformin HCL, Trypsin Chymotrypsin, Calcium Carbonate, Lactose, Starch, Magnesium Stearate, etc.
Machinery:
Advanced pharmaceutical manufacturing machinery including tablet compression machines, coating units, blister packing machines, capsule filling machines, and HPLC testing equipment.
Case-related items: • 10,000 empty CCM bottles falsely labelled as GSK products
• Die & punch set for “Chymoral Forte”
• Packaging materials of reputed brands
Legal Action
FIR No. 45/2026, dated 11.03.2026, u/s 318(4)/336/340/275/61(2) BNS, 18a(i)/18(c)/27(ii)/27(c) Drugs and Cosmetic Act & 103/104 Trade Mark Act, PS Crime Branch, Delhi. All accused have been arrested and further investigation is ongoing.
The operation was carried out by a team led by Inspector Manjeet Kumar, comprising: SI Parvesh, WSI Shabnam Saify, ASI Kanwarpal, HCs Vipin, Anuj, Manish, Vinod, Sohanpal, and Rajesh, under the supervision of ACP Sh. Patil Swagat Raj Kumar, and overall guidance of DCP Sh. Aditya Gautam.
Further investigation is in progress to identify and apprehend backward and forward linkages, including sources of raw materials and the distribution network, so as to completely dismantle the entire spurious medicine supply chain, said Mr. Aditya Gautam, DCP, crime branch, Delhi.