ED seizes assets of two Telangana-based companies on money laundering charges

While one case relates to the illegal manufacture of a scheduled drug, the other case involves a multi-level marketing scam.

The Enforcement Directorate (ED) has seized the assets of a Telangana-based company in connection with a money laundering case linked to the illegal manufacture of a planned drug, the federal agency said on Friday. February 5. The Prevention of Money Laundering Act (PMLA) seeks to seize fixed deposits worth Rs 1.93 crore from Hygro Chemicals Pharmtek Pvt Ltd located in Medak district of the state, it said. he said in a statement.

The company is accused of “unlawful manufacture and sale” of a programmed drug identified as Dextro Propoxyphene Hydrochloride (DPP HCL). The ED launched a criminal investigation against the company after investigating a complaint filed by the Hyderabad office of the Directorate of Tax Intelligence.

Hygro Chemicals Pharmtek Pvt Ltd had a license from the Central Narcotics Bureau, Gwalior, to manufacture DPP HCL, but the company ‘misused’ it and illegally shipped 6,450 kg of the drug to a partnership firm called JK Pharma Agencies, New Delhi in 2004 -2006 and they misstated the same as some other chemicals, ED said.

DPP HCL, he said, can be used as a raw material to manufacture narcotic substances.

The drugs were then sold illegally at the rate of Rs 3,000 per kg, and thus, the accused company generated proceeds of crime worth Rs 1,93,50,000, the ED said.

Meanwhile, Gachibowli Police in Cyberabad also filed a First Information Report (FIR) against another company named Indusviva Health Sciences Private Limited according to a report in Telangana Today. The company had been involved in multi-level marketing scams. The ED seized assets worth around Rs 66 crore and further launched a money laundering investigation based on the FIR.

After investigation, it was found that the founders of the company had diverted funds to a subsidiary and to their personal accounts. These were used to acquire real estate worth Rs 50.47 crore on behalf of companies and individuals. The founders were arrested by ED on December 15, 2021 and are currently in judicial custody, according to the report.

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With PTI inputs