Delhi Police Bust Rs 70 Lakh Medicine Racket; 5 Held

Delhi police have busted a racket involved in the illegal diversion and sale of government-supplied medicines meant for free distribution in hospitals, with the seized stock valued at about Rs 70 lakh. The operation, carried out over the past year to a year and a half, exposes how medicines intended to be provided freely to patients ended up in the informal market. The investigation highlights systemic gaps that allowed such diversion to continue for an extended period and underscores the need for tighter monitoring of essential drug supplies.

Five individuals, including a pharmacist and a contractual helper posted at Deen Dayal Upadhyay Hospital, have been arrested in connection with the case, police said. The suspects allegedly facilitated the diversion of medicines from government stocks and their covert sale, bypassing official channels. The arrests mark a significant development in the crackdown on corruption within publicly funded healthcare provisions and come amid questions about hospital stock controls.

The probe also revealed a broader interstate spurious medicines racket connected to a network of fake GST firms. These entities allegedly generated bogus invoices and laundered proceeds, with investigators estimating the scale of fake billing at nearly ₹50 crore. The discovery points to a complex criminal ecosystem that exploits regulatory gaps to profit from subsidized or free drugs.

Authorities say the investigation is ongoing and more arrests or raids could follow as they widen the inquiry into distribution channels, supplier links, and the potential involvement of other hospital staff. The case has intensified scrutiny of how free medicines reach patients and the safeguards needed to prevent counterfeit or diverted drugs from entering the system.

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