ED lens on Himachal's asst drug controller for 'favouring pharma cos, political link'

New Delhi: Enforcement Directorate has frozen over 40 bank accounts/FDRs linked to Nishant Sareen, a Himachal Pradesh-based assistant drug controller (ADC) and his family members as part of its money laundering probe into charges of bribery and "political patronage", people in the know told ET.

The agency's preliminary findings indicate that Sareen allegedly used his official position to facilitate favours for select pharma companies and laundered the proceeds through his family members. People quoted above said Sareen allegedly used his "high-profile contacts for extending favours" to select pharmaceutical companies.

Investigating the alleged political patronage extended to Sareen, the agency has found that ADC had faced multiple departmental inquiries but continued to receive influential postings under political patronage. "Red flags were raised time and again, but action was either delayed or diluted," an officer in the know told ET.

The agency's preliminary probe has found that despite being charge sheeted by the vigilance and anti-corruption bureau in 2019, and registration of FIR in 2022 by Panchkula Police, Sareen was posted as ADC, Dharamshala, in 2024.

On Sunday, ED had carried out searches on Sareen and his family members' premises. ED has taken stock of "many immovable properties" registered in the name of Sareen, his wife and his mother, including luxurious residences in New Chandigarh and Shimla. "Luxury item purchases were being done in the name of his father-in-law and mother," an official told ET.

ED has seized two vehicles (one Mahindra Scorpio N and one Kia Seltos) worth approximately ₹32 lakh purchased in the name of Sareen's mother and wife. The agency has alleged that the two vehicles were acquired "through funds generated through proceeds of crime". The agency also found more than 60 "unaccounted liquor bottles" at Sareen's New Chandigarh residence.

The probe agency has also found "interconnected financial transactions" between the bank accounts of a Panchkula-based pharmaceutical company (which has a partnership with 95% stake in the name of Sareen's wife) with family members of Sareen. The agency has alleged that there "are several instances of cash being deposited in this bank account" of the pharmaceutical company. "There are several credit/debit transfers from the bank account of the pharmaceutical company into the bank account of Nishant Sareen," an official quoted above told ET.

The agency is also investigating complaints of alleged extortion by Sareen in his present role as ADC, Dharamshala, and interconnected financial transactions between family members of Sareen and pharmaceutical companies.

ED's preliminary probe has found that Sareen, while being posted as ADC, Dharamshala, had freshly granted many drug manufacturing licences since September 2024 till date. The agency is also investigating the grant of 50 fresh drug licences and 60 show cause notices for suspension of activities (issued by Sareen) and their follow up action.

In a related development, the Himachal High Court has issued a notice to the Himachal government on a PIL raising the issue of political patronage given to Sareen despite serious corruption allegations against him.