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Informative

ED Provisional Attachment of Property in Codeine-Based Cough Syrup Diversion Case.

Update / Judgement Date

23 Nov 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Civil LawOther Legal Matters
ED Provisional Attachment of Property in Codeine-Based Cough Syrup Diversion Case.
WCP News Bulletin

Headnote:

The Enforcement Directorate (ED) has provisionally attached immovable property worth approximately Rs. 1 Crore belonging to M/s Vidit Healthcare Pvt. Ltd., Sirmour, HP under the PMLA, 2002. The attachment follows investigations into the illegal diversion of a codeine-based cough syrup (CBCS), “Cocrex,” for misuse as an intoxicant/drug. ED identified proceeds of crime amounting to approximately Rs. 2.92 Crore earned by the company through sales to entities controlled by Niket Kansal.


Background:

  1. ED initiated the investigation based on a case registered by the Narcotics Control Bureau (NCB), Jammu, against M/s Vidit Healthcare, its managing partner Neeraj Bhatia, Niket Kansal, and others.
  2. Investigations revealed that between 2018–2024, Vidit Healthcare supplied CBCS to several entities controlled by Niket Kansal—M/s S S Industries, M/s Kansal Industries, M/s Nouveta Pharma, M/s Kansal Pharmaceuticals, and N.K Pharmaceuticals—worth approximately Rs. 16.74 Crore.
  3. Part of the diverted CBCS was seized from Raees Ahmed Bhat, Srinagar, by NCB on 14 January 2024.
  4. Earlier, on 13 February 2025, ED conducted searches at the premises of Neeraj Bhatia and Niket Kansal, seizing cash of Rs. 32 Lakh and jewellery valued at Rs. 1.61 Crore.


ED Observations:

  1. The gross profit earned by Vidit Healthcare from the sale of CBCS to entities operated by Niket Kansal is estimated at Rs. 2.92 Crore, deemed as Proceeds of Crime under PMLA.
  2. Following searches and seizures, ED attached industrial land in Panipat, Haryana, belonging to Vidit Healthcare worth approximately Rs. 1 Crore.
  3. Further investigations are ongoing to identify additional proceeds and assets linked to the diversion of CBCS.


Legal Provisions Discussed:

  1. Prevention of Money Laundering Act, 2002 (PMLA) – Provisional attachment of property derived from criminal proceeds.
  2. Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) – Diversion and misuse of controlled substances.

Citation: Directorate of Enforcement Press Release, 24.11.2025

Case: Enforcement Directorate v. M/s Vidit Healthcare Pvt. Ltd. & Ors.

Court/Authority: Enforcement Directorate, Jammu Sub Zonal Office

Date of Action: 24 November 2025

Legal Provision: Prevention of Money Laundering Act, 2002 (PMLA)