The Enforcement Directorate seized ₹82.82 lakh in cash and $18,000 in foreign currency during coordinated raids in Hyderabad and Chennai. The operation targets a sophisticated network involved in illegal ketamine manufacturing and trafficking under the PMLA.

Key Takeaways

  • ED conducted simultaneous searches in Hyderabad and Chennai
  • Seized cash worth ₹82.82 lakh and $18,000 foreign currency
  • Three main accused linked to a clandestine ketamine lab were identified

Operation Overview

The Enforcement Directorate (ED), operating from its Bengaluru zonal office, executed search operations under the Prevention of Money Laundering Act (PMLA). The raids stem from a complaint filed by the Narcotics Control Bureau (NCB) after a 2019 seizure of 26.75 kg of ketamine in Bengaluru.

Key Accused and Their Roles

J. Kannan, Shivraj Urs (aka Mahesh Uthappa) and Putta Venkateshwarlu are identified as the core members of the racket. Venkateshwarlu, the R&D head at M/s Inchem Laboratories, Hyderabad, allegedly supplied raw intermediates, while Urs ran an illegal laboratory in Bengaluru to produce the drug.

Read Also:32,000 Evacuated in Polavaram as Godavari, Sabari Rivers Recede

Money‑Laundering Mechanisms

The seized cash and foreign currency indicate that proceeds from ketamine sales were funneled through cash, hawala channels and invested in immovable property, businesses and personal expenses, effectively laundering the illicit earnings.

Historical Background

Ketamine is classified as a psychotropic substance under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985. India has witnessed several high‑profile ketamine busts, notably the 2015 Mumbai‑Pune laboratory seizure, highlighting the drug’s persistent black‑market demand.

Why This Matters

BozokMedia analysis shows that dismantling such a sophisticated network not only curtails a lucrative illegal drug market but also sends a strong deterrent signal to other potential money‑laundering syndicates operating across state lines.

"Ketamine manufacturing and trafficking pose not just a public‑health risk but also a serious national‑security challenge," said a financial‑crime specialist.
Did You Know?: While ketamine is used medically for anesthesia and depression treatment, its non‑medical abuse has surged worldwide, fueling organized crime.

Frequently Asked Questions

What steps are being taken to curb ketamine trafficking? NCB and ED are jointly tracking the raw‑material supply chain and tightening oversight of chemical manufacturers.

Is there any foreign involvement in this case? No direct foreign accomplices have been identified yet, though investigators are probing potential international hawala links.