Puducherry: A Special Investigation Team (SIT) probing the large-scale counterfeit drug racket in Puducherry has arrested former Indian Forest Service (IFS) officer G. Sathiyamoorthy in connection with the case. Police sources confirmed that the SIT team apprehended Sathiyamoorthy at Hosur in Tamil Nadu and brought him to Puducherry for detailed interrogation.
The arrest marks a significant development in the ongoing investigation, which has already exposed an extensive network involved in the manufacture and distribution of fake medicines across several states.
Arrest Following Interrogation of Kingpin
According to police officials, the arrest of Sathiyamoorthy came after sustained questioning of Raja alias Valliappan, identified as the kingpin of the counterfeit drug syndicate. Raja, along with 19 other accused, had earlier been arrested for their alleged roles in producing and circulating fake medicines.
Investigators revealed that Raja was manufacturing counterfeit drugs using the names of nearly 14 well-known pharmaceutical brands and distributing them across 16 States. During searches conducted at his residence, the police recovered cash and jewellery worth approximately ₹2.5 crore.
Notably, Raja had also been previously arrested by the Tamil Nadu Police in a similar counterfeit drug case, indicating his repeated involvement in such illegal activities.
Role of Former IFS Officer Under Scanner
Police sources said that during interrogation, Raja disclosed the involvement of a former government official who had taken Voluntary Retirement Scheme (VRS) and had allegedly assisted him in handling Goods and Services Tax (GST) payments related to the illicit operation.
Based on this information, the SIT identified G. Sathiyamoorthy and launched a search operation. However, the former IFS officer reportedly went absconding, prompting intensified efforts to trace his whereabouts.
The SIT eventually tracked Sathiyamoorthy to Hosur, where he was arrested and later brought to Puducherry on Wednesday, December 24, 2025, for further questioning.
GST Officials’ Involvement Being Probed
During interrogation, Sathiyamoorthy reportedly named a few officials working in the GST office in Puducherry, alleging that they had helped him facilitate certain payments. Police sources said that steps have been initiated to seek permission from the Union government to proceed with their arrest, as required under service and legal protocols.
Investigators believe that the alleged assistance from officials may have helped the racket operate undetected for an extended period.
Calls for Central Agency Investigation
Meanwhile, Lieutenant Governor of Puducherry, K. Kailashnathan, has recommended a comprehensive probe by central agencies, including the Central Bureau of Investigation (CBI) and the National Investigation Agency (NIA), citing the scale and inter-state nature of the scam.
Officials said the recommendation reflects the seriousness of the case, particularly given its potential public health implications and the alleged involvement of former and serving government officials.
Investigation Ongoing
The SIT continues to examine financial trails, supply chains, and official links connected to the counterfeit drug network. More arrests are expected as the investigation progresses, with authorities stressing that strict action will be taken against all those found involved in the illegal operation.
The case has raised serious concerns over drug safety, regulatory oversight, and the misuse of official influence in facilitating organised crime.
