Case Study: Combatting Illicit Pharmaceuticals in India

Overview

Between 2017 and 2019, TM Eye Ltd embarked on a mission-critical initiative to combat the rampant issue of counterfeit pharmaceuticals in India. Partnering with key Indian law enforcement agencies, including the Food and Drug Administration (FDA) and various regional police departments, TM Eye orchestrated a series of meticulously planned operations. These efforts not only disrupted major counterfeit operations but also set new benchmarks in pharmaceutical enforcement.

Over a span of two years, TM Eye executed 30 high-impact raids nationwide, resulting in the seizure of counterfeit pharmaceuticals with a face value exceeding CHF 425 million (approximately USD 425 million). Additionally, the team confiscated printing plates essential for producing counterfeit pharmaceutical packaging, thereby striking at the heart of the illicit supply chain.

Challenges in the Counterfeit Pharmaceutical Landscape

India’s pharmaceutical sector, while robust, has been plagued by the infiltration of counterfeit drugs. These illicit products not only undermine the integrity of legitimate pharmaceutical companies but also pose significant health risks to consumers. The complexity of dismantling such operations lies in their widespread distribution networks, sophisticated packaging techniques, and the ability to operate covertly across multiple regions.

Strategic Approach by TM Eye

TM Eye’s strategy encompassed several key components:

  1. Intelligence Gathering: Leveraging advanced surveillance techniques and local intelligence sources to identify and monitor suspect activities.
  2. Undercover Operations (UCOs): Deploying undercover operatives to infiltrate suspect networks and gather actionable evidence.
  3. Collaborative Raids: Working in tandem with local law enforcement and regulatory bodies to execute coordinated raids.
  4. Technological Integration: Utilizing cutting-edge technology for tracking, data analysis, and evidence collection.
  5. Legal Prosecution: Ensuring that seized evidence leads to successful prosecutions under relevant Indian laws, notably The Copyright Act of 1957 and the Indian Drugs and Cosmetics Act of 1940.

Key Operations and Successes

  1. Dada Impex Raid – Mumbai, July 2018

Background:
Dada Impex emerged as a central node in the RX Partners Organised Crime Group (OCG), facilitating the distribution of counterfeit pharmaceuticals globally. Recognized as a fulfillment house, Dada Impex handled large volumes of illicit drug orders and packaging materials.

Operation Details:

  • Intelligence and Surveillance: Over six months, TM Eye conducted extensive mobile and static surveillance on three primary suspects, monitoring their daily movements, social media activities, and business operations.
  • Infiltration and Undercover Work: Undercover operatives engaged with delivery personnel and monitored online transactions to map the distribution network.
  • Raid Execution: In collaboration with Maharashtra FDA inspectors, TM Eye executed a raid on Dada Impex, seizing over 290 cartons of counterfeit pharmaceuticals and packaging printing plates.

Outcomes:

  • Seizures: Counterfeit drugs valued at USD 425 million and critical printing infrastructure.
  • Arrests: Three key individuals arrested, currently awaiting trial.
  • Impact: First-ever successful raid on an active fulfillment house in India, significantly disrupting the supply chain.

  1. Counterfeit Distribution Disruption – Mumbai and Bangalore, August 2018

Background:
Following the Dada Impex raid, TM Eye targeted another key supplier who attempted to relocate his operations from Mumbai to Bangalore to evade law enforcement.

Operation Details:

  • Tracking Movement: Using conventional mobile surveillance, TM Eye tracked the suspect’s relocation to Bangalore.
  • Surveillance Operations: Monitored the suspect’s new premises, capturing evidence of large-scale distribution activities.
  • Joint Enforcement: Collaborated with Bangalore police to conduct a synchronized raid.

Outcomes:

  • Seizures: Extensive quantities of pharmaceutical labels, outer packaging, empty bottles, and loose pills.
  • Arrests: Suspect charged under The Copyright Act of 1957.
  • Impact: Prevented the suspect from continuing distribution activities, curtailing the spread of counterfeit drugs.

  1. Chennai Crackdown – March 2018

Background:
Chennai had become a hotspot for counterfeit drug distribution, with suspects operating clandestinely in the Poonamallee area.

Operation Details:

  • Intelligence Utilization: Leveraged prior intelligence to identify key suspects involved in packaging and distribution.
  • Undercover and Test Purchases: Conducted test purchases to verify the authenticity of the operations.
  • Raid Execution: Coordinated with local police to raid the suspect’s workplace.

Outcomes:

  • Seizures: Significant quantities of fake tablets, packaging materials, and labels.
  • Arrests: Suspect charged under The Copyright Act of 1957.
  • Impact: Disrupted local counterfeit distribution networks, enhancing consumer safety.

  1. Tirunelveli Operation – July 2018

Background:
Tirunelveli, a rural town in Tamil Nadu, was identified as a key distribution point for counterfeit medicines, posing logistical challenges due to its remote location.

Operation Details:

  • Surveillance: Conducted both static and mobile surveillance to monitor suspect activities while maintaining operational security.
  • Collaboration: Worked with local police to manage the complexities of conducting operations in a hostile environment.
  • Raid Execution: Seized large quantities of counterfeit tablets, packaging labels, and empty bottles during the arrest.

Outcomes:

  • Seizures: Extensive counterfeit pharmaceuticals and packaging materials.
  • Arrests: Suspect charged under The Copyright Act of 1957.
  • Impact: Strengthened law enforcement presence in rural areas, deterring future illicit activities.

  1. Hosur and Sriperumbudur Raids – July 2018

Background:
A suspect operating near the Bangalore border was identified as a significant player in the distribution of counterfeit drugs across multiple regions, including Mysore, Chennai, and Sriperumbudur.

Operation Details:

  • Intelligence and Surveillance: Tracked the suspect’s movements across various cities using mobile surveillance.
  • Operational Mapping: Identified the suspect’s use of temporary lodging to avoid detection.
  • Raid Execution: Conducted a coordinated raid with Sriperumbudur police, seizing over 25,000 counterfeit tablets and packaging materials.

Outcomes:

  • Seizures: Over 25,000 counterfeit tablets, extensive packaging materials, and labeling equipment.
  • Arrests: Suspect charged under The Copyright Act of 1957.
  • Impact: Disrupted a widespread distribution network, limiting the reach of counterfeit pharmaceuticals.

  1. Coartem Distribution Network Dismantling – Kolkata, March & August 2019

Background:
Coartem, an anti-malarial drug, was being distributed in counterfeit form across Northern India, posing severe health risks and undermining malaria treatment efforts.

Operation Details (March 2019):

  • Intelligence Gathering: Identified a criminal gang in Kolkata possessing lithographic printing plates used for counterfeit packaging.
  • Surveillance: Maintained intensive surveillance in a crowded market area, using undercover operatives to infiltrate the gang.
  • Raid Execution: Seized 15 lithographic printing plates and approximately 80,000 counterfeit labels during the raid.

Operation Details (August 2019):

  • Follow-up Intelligence: Continued monitoring based on prior operations led to identifying a distributor in Kolkata.
  • Undercover Operations: Introduced undercover operatives and conducted test purchases to validate suspect activities.
  • Raid Execution: With Enforcement Branch assistance, seized over 2,000 counterfeit Coartem boxes, blister packs, and printing blocks.

Outcomes:

  • Seizures (March): 15 printing plates and 80,000 counterfeit labels.
  • Seizures (August): 2,000 counterfeit Coartem boxes and related materials.
  • Arrests: Main suspects charged under The Copyright Act of 1957 and for Criminal Conspiracy.
  • Impact: Significantly impaired the counterfeit Coartem supply chain, safeguarding public health initiatives.

Overall Impact and Achievements

  • Massive Seizures: Counterfeit pharmaceuticals worth over USD 425 million and essential production equipment were confiscated, severely disrupting illicit supply chains.
  • Legal Prosecutions: Multiple suspects were arrested and charged under stringent Indian laws, ensuring accountability and deterring future offenses.
  • Website Shutdowns: Over 8,500 counterfeit drug-selling websites were dismantled, cutting off online distribution channels.
  • Geographical Reach: Operations spanned major Indian cities including Mumbai, Bangalore, Chennai, Tirunelveli, Hosur, Sriperumbudur, and Kolkata, demonstrating TM Eye’s extensive operational capabilities.
  • Innovative Enforcement: TM Eye became the pioneering enforcement agency to raid an active fulfillment house in India, setting a precedent for future operations.
  • Collaborative Success: Effective partnerships with local law enforcement and regulatory bodies were instrumental in the success of these operations.

Testimonials

“TM Eye’s expertise and relentless pursuit in combating counterfeit pharmaceuticals have been instrumental in safeguarding public health in our region. Their collaboration with our team ensured the success of these operations.”
— Inspector Rajesh Kumar, Maharashtra FDA

“The strategic approach and dedication demonstrated by TM Eye have significantly disrupted the counterfeit drug market in India. Their work is commendable and essential for maintaining the integrity of the pharmaceutical industry.”
— Dr. Anjali Mehta, Director, Chennai Health Department

Conclusion

TM Eye’s proactive and strategic initiatives in India have showcased our capability in tackling the complex issue of counterfeit pharmaceuticals. By leveraging advanced surveillance techniques, undercover operations, and strong collaborations with local authorities, TM Eye not only disrupted major illicit networks but also set new standards in pharmaceutical enforcement. These efforts have substantially enhanced consumer safety, protected legitimate businesses, and reinforced the integrity of the pharmaceutical supply chain in India.

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Year:

2017 - 2019

Location:

India

Industry:

Pharmaceutical Enforcement and Counterfeit Prevention