A Chennai-based pharmaceutical distributor, Balasubramanian, has been arrested in connection with an interstate counterfeit drug racket being investigated by Karnataka Police, sources said.
According to sources, Balasubramanian was arrested in Chennai on Tuesday, September 29, 2026, and taken to Bengaluru on Wednesday, September 30, for questioning by the Special Investigation Team (SIT). He is now the seventh accused arrested in the case.
The arrest came as investigators were still investigating the alleged manufacture and distribution of counterfeit medicines through an interstate pharmaceutical supply chain.
Balasubramanian linked to DM Pharma
Police said Balasubramanian was a partner in DM Pharma, a Chennai-based pharmaceutical distribution company established in 2021 by him, alleged racket kingpin R Prashanth Rajan Babu and Rajan Babu's wife.
Investigators are examining whether the company was allegedly used to distribute counterfeit medicines along with genuine pharmaceutical products.
A senior police officer told Hindustan Times that investigators suspect Balasubramanian received consignments of suspected counterfeit medicines from Rajan Babu and another accused, Veeresh, before distributing them in Chennai and other locations.
The SIT is looking into the movement of the suspected consignments, financial transactions and the companies involved in the distribution chain.
Investigation Into Hospital Supply Chain
Hospitals and drug stores may have purchased medicines from dealers linked to the case, the investigation found.
Police had sent notices to some hospitals seeking information on their purchases, they said. Investigators are exploring the role of dealers, distributors and buyers to discover how the suspected counterfeit medicines made it through the pharmaceutical supply chain, they said.
The inquiry is particularly important because counterfeit medicines can pose serious risks to patients when they enter hospitals, pharmacies or other healthcare facilities.
Case Began With Bidadi Raid
The investigation began after an illegal manufacturing facility near Bidadi in Bengaluru South district was searched on August 18.
The Karnataka Food Safety and Drugs Administration and other authorities reportedly seized suspected counterfeit and expired medicines, machinery, packaging material and other stock valued at around ₹5 crore.
Investigators then formed a Special Investigation Team to follow the suspected interstate network.
According to police, the operation involved procuring cheaper bulk medicines, repackaging or relabelling them and distributing them as medicines associated with established pharmaceutical brands.
Alleged kingpin Prashanth arrested earlier
The arrest of Balasubramanian followed the detention of alleged racket kingpin R Prashanth Rajan Babu.
Prashanth was arrested at Kempegowda International Airport in Bengaluru on September 28 because investigators traced him after the August raid. He was later taken into police custody for questioning.
Police are now investigating the alleged connections between Prashanth, Balasubramanian and other suspects in the suspected supply and distribution network.
Seven Arrests So Far
With Balasubramanian's arrest, the number of people taken into custody in the case has reached seven, according to reports.
The SIT is still following up on the alleged supply chain, financial transactions and distribution network, one of its officials said.
