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Baddi firm asked to halt narcotic production amid CID probe

Unauthorised sales, tax evasion, excessive output to blame
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Taking a stringent stance following a CID investigation, the Drugs Control Administration (DCA) has ordered a Baddi-based pharmaceutical company to cease the manufacturing of all narcotic and psychotropic drugs pending further inquiry. The probe, ongoing for several months, revealed the unit had a valid licence for production but was allegedly involved in unauthorised sales of narcotic drugs in multiple states.

Firm’s response unsatisfactory

After receiving information from the state CID, a show-cause notice was issued to the company at Baddi. However, the firm's response was unsatisfactory, leading us to halt production and sales of the implicated products. — Manish Kapoor, state drug controller

The assistant drugs licensing authority issued a directive based on information from the CID, requiring the company to halt production of all products containing active pharmaceutical ingredients classified under both the Drugs and Cosmetics Act, 1940, and the Narcotic Substances and Psychotropic Substances Act.

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State Drug Controller Manish Kapoor confirmed, "After receiving information from the state CID, a show-cause notice was issued to the company at Baddi. However, the firm's response was unsatisfactory, leading us to halt production and sales of the implicated products."

Products such as tramadol, nitrazepam and alprazolam were manufactured by the company, with tramadol sales under particular scrutiny. The CID investigation revealed that large quantities of tramadol were allegedly diverted by a trader based in Una, who distributed them illegally in states, including Uttar Pradesh, Maharashtra, West Bengal and Bihar.

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An FIR was filed in October by the state CID’s anti-narcotics task force after discovering that the unit produced substantial quantities of psychotropic drugs within months and sold in states with suspected tax evasion. The CID reported the drugs were allegedly under-priced, raising tax concerns. Tramadol, an opioid pain reliever, is widely abused for its sedative effects.

The CID has directed the firm to halt distribution of existing stock until the investigation concludes.

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