Allahabad High Court Upholds NDPS Act Prosecution in Large-Scale Codeine Syrup Case

Court dismisses petitions challenging FIRs as investigations reveal fraudulent practices in codeine-based cough syrup trade.

In a significant ruling, the Allahabad High Court has dismissed a series of petitions seeking the quashing of FIRs related to the large-scale illegal trade of codeine-based cough syrups across Uttar Pradesh. The judgment, delivered by Justices Siddhartha Varma and Achal Sachdev, emphasizes the applicability of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) alongside the Drugs and Cosmetics Act, 1940, and the newly enacted Bharatiya Nyaya Sanhita, 2023, to prosecute the alleged fraudulent practices uncovered during investigations.

The petitions, led by Birendra Lal Verma among others, argued against the categorization of codeine-based syrup as a "manufactured drug" under the NDPS Act, citing Clause 35 of the Notification dated 14.11.1985, which exempts certain preparations from being classified as such. However, the court noted that despite this exemption, the scale of illegal trade, coupled with fraudulent documentation and misuse of e-way bills for transportation, warranted prosecution under multiple laws.

The court highlighted the extensive network involved in smuggling cough syrups, originating from Jharkhand and distributed across Uttar Pradesh, with tentacles reaching neighboring states. It was revealed that the syrup was transported under the guise of other goods, such as snacks, using fabricated documents and identities. Investigations have uncovered the use of non-existent firms and fraudulent practices to facilitate the illegal trade.

Citing precedents from the Supreme Court, including the landmark judgment in Directorate of Revenue Intelligence v. Raj Kumar Arora, the bench reiterated that dealing with substances capable of abuse, even if they have medicinal use, falls under the purview of the NDPS Act when conducted unlawfully. The court stressed the importance of comprehensive investigation to ensure the effective enforcement of the law.

The judgment serves as a stern reminder of the legal repercussions of engaging in fraudulent trade practices, particularly in the pharmaceutical sector. It underscores the judiciary's commitment to uphold the rule of law in combating drug abuse and ensuring public health safety.

The court has directed investigating agencies to conduct their operations with integrity and avoid any malicious activities during the probe. The dismissal of the petitions paves the way for continued investigations into the illegal trade network, reflecting a robust legal stance against the misuse of medicinal drugs for narcotic purposes.

Bottom Line:

NDPS Act - Codeine-based cough syrup (Phensedyl) not considered as a "manufactured drug" under NDPS Act if it satisfies conditions under Clause 35 of Notification dated 14.11.1985. However, use of fraudulent practices, fabricated documents, and large-scale illegal trade makes prosecution under NDPS Act, Drugs and Cosmetics Act, and other laws valid.

Statutory provision(s): Narcotic Drugs and Psychotropic Substances Act, 1985 Sections 8(c), 21, 80; Drugs and Cosmetics Act, 1940 Section 32(3); Bharatiya Nyaya Sanhita, 2023; Criminal Procedure Code, 1973 Section 482

Birendra Lal Verma v. State of U.P., (Allahabad)(DB) : Law Finder Doc Id # 2824348