Massive Fake Cough Syrup and Financial Fraud Racket Busted in Varanasi; Two Arrested, SIT Expands Probe

Varanasi Police uncovered a large illegal cough syrup trafficking and financial fraud network, arresting two key accused. The investigation links the racket to Lucknow, with SIT seizing fake documents, assets and bank transfers worth crores, expanding the probe further.

Post Published By: Karan Sharma

Updated : 8 December 2025, 6:13 PM IST

Major Cough Syrup Smuggling and Financial Fraud in Varanasi

Varanasi: Varanasi police have busted an organized network involved in cough syrup smuggling and financial fraud worth crores of rupees. Police have arrested two key accused in this racket—Vishal Kumar Jaiswal (34) and Badal Arya (33). Both accused are residents of the Lalpur-Pandeypur police station area and have been defrauding people of crores of rupees for a long time through various illegal means, including forged documents.

How did the fraudulent network operate?

According to police and sources, this gang used forged documents to defraud people. The accused extorted large sums of money from people under the guise of fake credit agencies, fake vehicle registrations, fake land documents, and investment schemes.

They had set up fake companies named "GSAC Khojwa Land Developer Amit Jaiswal" and "Shaili Traders." Through these fake companies, they defrauded people in the name of investments and, using the documents, obtained expensive goods and loans.

Narcotic Cough Syrup Smuggling Ring Cracked: SIT exposes Rs 425 Crore illegal trade trail

How much was the loss?

The investigation revealed that:

• Expensive products and materials worth ₹418,000 were purchased on fake documents.
• Financial loans and properties worth over ₹5 crore were fraudulently acquired.
• Illegal assets worth approximately ₹2 crore were created.
• Also shocking is that this gang used illegal weapons to seize land and intimidate.

The Mastermind of the Cough Syrup Scandal

Action in Lucknow

The impact of the cough syrup racket was not limited to Varanasi. Warder Mahendra Singh, posted at Lucknow's Model Jail, has also been suspended. The investigation revealed that lakhs of rupees were transferred from the account of the main accused, Alok Singh, to his wife's account.

SIT Investigation and Further Action

The SIT is conducting rapid raids in Varanasi in this case. Two close associates of the main accused, Shubham Jaiswal, have also been detained. Several important documents have been recovered from them, revealing the depth of the entire network.

Drug Mafia Action: Massive Raids Seal Medical Stores After Cough Syrup Scandal

Legal provisions in effect

A case has been registered against the accused under several serious sections of the Indian Penal Code and the Arms Act. Police may make more arrests in the coming days.

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