A kingpin ran 13 fake drug factories under 14 brand names from Puducherry, roped in a retired Forest Service officer for GST paperwork, and shipped toxic counterfeits to 16 states. The UT government's contribution: looking the other way.
Puducherry achieved the remarkable feat of becoming India's counterfeit pharmaceutical hub under its government's nose. A syndicate run by kingpin Raja alias Valliappan operated 13 unlicensed factories producing fake versions of 14 well-known drug brands including Lupin, complete with counterfeit holograms and QR codes. The operation shipped fake medicines to 16 states. When investigators followed the money trail, they found retired Indian Forest Service officer G. Sathiyamoorthy handling GST payments — because apparently protecting forests and facilitating pharmaceutical fraud share transferable skills. Police seized Rs 2.5 crore in cash and jewelry from Raja's residence. The Drugs Control Department flagged 34 suspected counterfeit drug samples circulating in local markets. The Lieutenant Governor had to recommend CBI and NIA involvement because the UT's own enforcement had failed so completely. During the April 2026 elections, Rahul Gandhi called the scam 'murder' and accused the AINRC-BJP government of running a '30 percent commission' regime. Raja, for his part, had been previously arrested in Tamil Nadu for the same thing.