In a significant crackdown on corruption in the pharmaceutical regulatory system, the Enforcement Directorate (ED) in Shimla has launched legal action against a former senior drug control official and his associates. The agency has filed a prosecution complaint under the stringent Prevention of Money Laundering Act (PMLA), 2002, targeting illicit wealth amassed through alleged bribes for drug manufacturing licences.
Charges and Conviction in the Corruption Case
The central probe agency's case targets Kapil Dhiman, the then deputy drug controller of Solan, along with his father Laxman Singh and nephew Puneet. The core allegation is that Dhiman abused his official position to illegally collect money from pharmaceutical companies operating in his jurisdiction. This money, termed "proceeds of crime," was allegedly received as gratification for issuing and renewing crucial drug manufacturing licences.
The ED's investigation is based on a prior First Information Report (FIR) registered by the Himachal Pradesh State Vigilance and Anti-Corruption Bureau in Solan. The vigilance case, filed under the Prevention of Corruption Act, 1988, and the Indian Penal Code, led to a chargesheet on March 9, 2018. In a related development, the Special Court in Solan, on December 11, 2024, convicted Kapil Dhiman, his father, and his nephew for their roles in the corruption offence.
How the Illicit Money Was Laundered
The ED's money laundering probe uncovered a sophisticated scheme to hide the origin of the illegal funds. Investigators found that Dhiman, after allegedly receiving bribes, engaged in layering and projecting the tainted money as untainted. This was accomplished through several methods:
- Investing in movable and immovable properties in his own name and in the names of family members, including his father and nephew.
- Routing money through benami transactions to conceal true ownership.
- Using unsecured loans without formal agreements.
- Making cash payments and creating complex banking arrangements to obscure the money trail.
The total value of the assets identified as proceeds of crime is substantial. In January 2022, the ED had provisionally attached properties belonging to Dhiman and his family members worth approximately Rs 2.07 crore.
Legal Proceedings and Broader Implications
The prosecution complaint has been formally filed before the Special Court (PMLA) in Shimla, marking the next legal step following the criminal conviction. This case highlights a serious issue of corruption within a critical public health sector—drug regulation. The allegation that licences for manufacturing medicines were issued or renewed in exchange for bribes raises concerns about the integrity of the regulatory framework designed to ensure drug safety.
The ED's action underscores the agency's focus on tracking and seizing assets derived from corrupt practices. By invoking the PMLA, the authorities aim to not only prosecute individuals but also to strip them of the financial benefits gained from their illegal activities. This serves as a stern warning to public officials who might consider abusing their power for personal gain.
