LUCKNOW, Dec. 3 -- In a major escalation of the ongoing investigation into the interstate codeine-based cough syrup diversion racket, the Enforcement Directorate (ED), Lucknow zone, on Tuesday registered a Prevention of Money Laundering Act (PMLA) case against alleged kingpin Shubham Jaiswal and several others, confirmed ED officials here on Wednesday.

By invoking PMLA, the ED will now probe the financial routes used to launder proceeds from illegal cough syrup sales, Benami bank accounts and digital transactions as well as shell companies, including Saili Traders, used to procure and divert stock and potential foreign links involving money transfers and cross-border networks.

The ED officials suspect the illegal trade generated crores ...