Codeine-Based Cough Syrup Racket: Allahabad High Court Grants Interim Bail to Vibhor Rana
Court noted that Rana was not named in the FIR, and no recovery was made from his possession in the Phensedyl diversion investigation
Allahabad High Court grants interim bail to Vibhor Rana in the Phensedyl diversion case
The Allahabad High Court (Lucknow Bench) has granted interim bail to Vibhor Rana, one of the accused in a sprawling interstate network alleged to have diverted codeine-based cough syrup into illegal channels, after noting that his name did not figure in the FIR and that no recovery was made from his possession.
The bench of Justice Karunesh Singh Pawar passed the order while hearing a bail application filed by Rana in connection with a 2024 case registered at Sushant Golf City police station in Lucknow. The case has been registered under multiple provisions of the Indian Penal Code, including cheating, forgery, use of forged documents, criminal conspiracy and causing disappearance of evidence.
According to the prosecution, several co-accused had set up bogus pharmaceutical firms under different names. It was alleged that the financial transactions of these firms were operated by Vibhor Rana and another accused using bank IDs and passwords belonging to their associates and employees. These transactions, the prosecution claimed, facilitated the illegal sale of Phensedyl cough syrup, which was allegedly diverted for intoxication rather than legitimate medicinal use. The prosecution further alleged that the cough syrup was smuggled to various parts of the country and even outside India, including Bangladesh.
Counsel appearing for Rana argued that the applicant was innocent and had been implicated solely on the basis of confessional statements made by co-accused Bittu Kumar and Sachin Kumar. It was pointed out that Rana was not named in the FIR and that no recovery of cough syrup or any other incriminating material had been effected from him. The defence submitted that, apart from the statements of the co-accused, there was no independent material linking Rana to the alleged offences.
Rana's counsel also emphasised that the alleged recovery of Phensedyl cough syrup had been made from co-accused Shailendra Arya, who was granted bail by the high court in June 2024. Arya, it was submitted, had admitted to being the wholesaler and owner of the truck from which the medicines were seized and was also holding a valid wholesale licence under the Drugs and Cosmetics Rules. Since Rana had no recovery attributed to him, his case stood on a better footing than that of Arya, whose bail order had not been challenged by the prosecution.
Rana further contended that Phensedyl cough syrup does not fall within the definition of a narcotic drug or psychotropic substance and therefore the provisions of the NDPS Act were not attracted. Reliance was placed on an earlier division bench judgment of the high court which had quashed NDPS proceedings against him on the same ground. The counsel also referred to a Supreme Court judgment which held that where allegations pertain to offences under the Drugs and Cosmetics Act, registration of an FIR by the police is not warranted unless a separate cognizable offence is made out.
It was also submitted that Rana is a licensed distributor and a super distributor of a pharmaceutical company, holding valid licences under the Drugs and Cosmetics Rules. According to Rana's counsel, the prosecution had bypassed the statutory procedure under the Drugs and Cosmetics Act and wrongly resorted to criminal prosecution.
The State opposed the bail plea, arguing that Rana was involved in forgery and smuggling of cough syrup and that the allegations were supported by the statements of co-accused. The Government Advocate sought time to file a reply to the bail application.
After perusing the record, the court took note of the bail granted to co-accused, the absence of recovery from Rana, the fact that he was not named in the FIR, and the earlier judicial pronouncements relied upon by the defence. Court also recorded that Rana had been in custody since November 13, 2025 and had undertaken not to leave Lucknow during the period of bail.
Considering these factors, the high court held that a case for interim bail was made out and directed that Vibhor Rana be released on interim bail on furnishing a personal bond and two sureties, subject to conditions including non-tampering of evidence, non-influencing of witnesses, regular appearance before the trial court and cooperation with the investigation.
The matter has been listed for further hearing on January 5, 2026.
The case forms part of a wider investigation by Uttar Pradesh agencies into the alleged diversion of codeine-based cough syrups from licensed pharmaceutical channels into the illicit market. The probe gathered pace in late 2024 after multiple seizures indicated that large quantities of Phensedyl were being moved through documented transactions while allegedly being diverted for illegal sale.
Investigators have claimed that the racket operated through a web of shell firms and distributors, particularly in western Uttar Pradesh, with financial trails and paperwork used to mask the actual movement of consignments. The investigation has also flagged possible interstate and cross-border routes, including towards eastern India, bringing the role of drug regulators and central agencies into focus.
Several connected cases arising from the same probe are pending before courts in different states, with a recurring legal issue being whether such alleged diversion attracts the NDPS Act or is confined to violations under the Drugs and Cosmetics law.
As per media reports, enforcement agencies have claimed that the alleged codeine-based cough syrup syndicate generated around Rs. 200 crore through the diversion and illegal sale of Phensedyl and similar syrups.
Case Title: Vibhor Rana vs. State Of U.P. Thru. Secy. Home Lko.
Order Date: December 18, 2025
Bench: Justice Karunesh Singh Pawar