Telangana DCA unearths Rs 70.56-lakh excipient label-tampering scam

Telangana: In a major enforcement action targeting the pharmaceutical supply chain, the Drugs Control Administration (DCA) in Telangana has busted a sophisticated racket involving the illegal label-tampering and misrepresentation of critical pharmaceutical excipients.

Acting on actionable intelligence, a team of regulatory officers executed a swift enforcement raid at the unlicensed premises of DK Pharmaceuticals, operating out of Mangapuram Colony, Old Alwal. The regulatory operation culminated in the seizure of bulk active materials valued at Rs 70.56 lakhs.

During the search and seizure operation, DCA enforcement officers detected 12 cardboard drums containing a cumulative total of 240 kg of Hydroxypropyl Betadex USP/NF (Hydroxypropyl-ß-cyclodextrin), a high-value solubilizing and stabilizing excipient critical for standard formulation development.

The inventory was found affixed with fraudulent labels detailing a fictitious manufacturing site at the Export Promotion Industrial Park (EPIP) in Pashamylaram in Sangareddy district. Physical verification of the site by regulatory inspectors confirmed that the purported licensed facility was entirely non-existent, establishing a prima facie case of a spurious operation.

Interrogations and preliminary inquiries revealed that the partners of the firm, identified as Sateesh Babu Dhulapalli and Nagaswami Katragadda, had engaged in the unauthorized removal of original manufacturer labels to substitute them with fabricated ones.

By counterfeiting batch numbers, manufacturing dates, and expiry profiles, the accused deliberately attempted to introduce unauthenticated raw materials into the regulated pharma stream. Consequently, the entire contraband stock was confiscated under statutory provisions to prevent downstream contamination of commercial drug batches.

The apex regulatory team that spearheaded the operation included Dr. K. Prabhakar, Assistant Director (Quthbullapur), Dr. B. Lakshmi Narayana, Assistant Director (Medchal), K. Murali Krishna, Drugs Inspector (Malkajgiri), and E. Thirupathi, Drugs Inspector (Quthbullapur). The enforcement drive was conducted under the direct supervision of G. Srinivas, Deputy Director-I in the DCA. In compliance with standard operating protocols, statutory samples of the seized excipient were drawn by the inspectors for immediate dispatch to the government analyst for chemical analysis.

Senior regulatory officials stated that the fraudulent operations executed by the firm constitute blatant violations of the Drugs and Cosmetics Act, 1940, and the Drugs Rules thereunder. Under the statutory framework, the fabrication of manufacturing data and the distribution of mislabelled or spurious materials constitute non-bailable offences. Upon completion of the investigation and receipt of the analytical reports, the department will file a formal criminal complaint in the court of competent jurisdiction against the designated partners.

The legal provisions invoked in the matter carry stringent punitive measures, including statutory penalties and rigorous imprisonment for a term extending up to five years for compromising public health safety. The state regulatory apparatus has widened its scope of inquiry to trace both the upstream source of the unlabelled bulk chemicals and the downstream pharmaceutical manufacturers who may have been targeted as potential procurement channels for these compromised excipients.

In a bid to strengthen public participation in regulatory vigilance, the Director General of the Telangana DCA has urged citizens to flag any suspicious manufacturing or clandestine drug distribution networks via their dedicated toll-free enforcement hotline. The department re-emphasized its commitment to maintaining absolute compliance with Good Distribution Practices (GDP) and safeguarding the integrity of the pharmaceutical supply chain across the state.

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