The Enforcement Directorate has raided locations in Hyderabad and Chennai in an alleged ketamine trafficking and money-laundering case, seizing ₹82.82 lakh cash and $18,000 in foreign currency. The probe, originating from NCB ketamine seizures in Bengaluru, is examining alleged proceeds routed through cash and hawala channels. The allegations remain under investigation.
ED Ketamine Trafficking Case: ₹82.82 Lakh Cash, $18,000 Seized in Hyderabad and Chennai Raids
In Hyderabad and Chennai, the Enforcement Directorate carried out simultaneous searches as part of an investigation into money laundering linked to an alleged ketamine manufacturing and trafficking network. The authorities seized cash, foreign currency, financial records and digital evidence as a result of the operation.
The Enforcement Directorate (ED) has intensified its probe into the trafficking of ketamine by conducting searches in Hyderabad and Chennai under the Prevention of Money Laundering Act (PMLA), 2002. The operation pertains to an alleged organized network involved in the illegal manufacture and trade of ketamine, a psychotropic substance covered under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
The investigation was initiated on the basis of an Enforcement Case Information Report (ECIR) registered on the basis of the prosecution complaint filed by the Narcotics Control Bureau (NCB), Bengaluru, the ED’s Bengaluru Zonal Office said. The money-laundering investigation is the latest of a series of narcotics probes into the alleged illegal manufacture and distribution of the drug ketamine.
The predicate offence relates to the seizure of 26.75 kilograms of ketamine from accused J. Kannan in Bengaluru on April 30, 2019. Additionally, on May 1, 2019, the investigators seized 25.45 kilograms of ketamine from an alleged clandestine laboratory reportedly operated by Shivaraj Urs, alias Mahesh Uthappa.
ED investigation traces alleged ketamine supply chain
The Enforcement Directorate said that the raw materials allegedly used in the manufacture of ketamine were procured from the Research and Development Centre of M/s Inchem Laboratories Pvt Ltd, Hyderabad. The agency alleged that Putta Venkateshwarlu, who was the company’s Research and Development in-charge, played a key role in providing access to these materials.
The ED said Shivaraj Urs alias Mahesh Uthappa had set up an illegal laboratory in Bengaluru for clandestine manufacture of ketamine. Investigators further said that Putta Venkateshwarlu supplied ketamine intermediates, raw materials and technical expertise that allegedly enabled the production process.
The agency also named J Kannan, Shivaraj Urs alias Mahesh Uthappa and Putta Venkateshwarlu as accused in the case. The three were earlier involved in cases related to alleged illegal manufacture, sale and transportation of ketamine, the Enforcement Directorate said.
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Money laundering allegations and seized assets
The Enforcement Directorate said the proceeds allegedly generated from the illegal manufacture and sale of ketamine were received through cash transactions and hawala channels. The investigators said the funds were then used to buy movable and immovable properties, invest in companies and business entities and finance personal expenses.
During the simultaneous searches in Hyderabad and Chennai, officials recovered and seized ₹82.82 lakh cash and $18,000 foreign currency. A number of digital devices, mobile phones, financial and business records, property papers and other items believed to be related to the alleged proceeds of crime were also seized by authorities.
The seized evidence is expected to help investigators trace financial transactions, identify more assets and examine the flow of funds allegedly associated with the suspected trafficking network. The agency did not say publicly if there will be more arrests or attachment proceedings of assets.
Case remains under investigation
The probe continues under the provisions of PMLA along with the core offences under the NDPS Act. The Enforcement Directorate’s allegations are still under judicial scrutiny and the accused have all the legal rights during the process.
The case also points to a growing emphasis of central investigating agencies in breaking down financial networks allegedly supporting narcotics trade. As the probe moves forward, authorities are expected to look at more financial links and evidence gathered during recent searches. Sprouts News will continue to report on official developments and publish verified updates as the investigation unfolds.
