India-based pharmaceutical companies accused of smuggling fentanyl to US

Two pharmaceutical companies based in India have been accused of smuggling chemicals used in the production of the synthetic opioid fentanyl into the United States and other countries, including Mexico, according to U.S. authorities.

Raxuter Chemicals and Athos Chemicals, both operating out of Surat in Gujarat, India, are alleged to have supplied materials necessary for fentanyl production, federal prosecutors said. The charges were announced by the office of Breon Peace, the U.S. Attorney for the Eastern District of New York.

Bhavesh Lathiya, the 36-year-old founder and executive of Raxuter Chemicals, was arrested in New York as part of the investigation.

In a statement, Attorney General Merrick Garland emphasized the Justice Department’s commitment to addressing the fentanyl crisis. “We have pledged to never forget the victims of fentanyl and to hold accountable those responsible for this epidemic. That is what we are doing, and that is what we will continue to do,” Garland said.

Allegations of deceptive practices

Prosecutors allege that the companies used deceptive methods to avoid detection, including falsifying customs forms, mislabeling packages, and providing false declarations at border crossings.

One incident cited involved a shipment sent by Raxuter Chemicals to New York in June 2024. Labeled as containing vitamin C, the package allegedly concealed chemicals used in the production of fentanyl.

Federal authorities describe fentanyl as a synthetic opioid up to 50 times stronger than heroin and 100 times stronger than morphine. The drug has been a major driver of overdose deaths in the U.S. in recent years.

U.S. prosecutors claim that chemicals supplied by the two Indian companies were utilized by drug cartels, including Mexico’s Sinaloa cartel, to manufacture highly addictive synthetic drugs in clandestine laboratories.