The Allahabad High Court has rejected the bail application of Bhola Prasad in a case concerning the alleged diversion of large quantities of New Phensedyl cough syrup. The Court also clarified when codeine-based cough syrup containing the permitted quantity of codeine can fall outside the scope of the Narcotic Drugs and Psychotropic Substances (NDPS) Act.
The judgment was delivered by Justice Arun Kumar Singh Deshwal on September 1, 2026. The Court dealt with several connected bail applications raising a common legal issue concerning the sale, stocking and transportation of codeine-based cough syrups.
Background of the Case
Bhola Prasad is the proprietor of Saili Traders, Ranchi, which held drug licences as a super stockist. According to the record, his firm sold 3,66,000 bottles of New Phensedyl to Maa Kripa Medical, Sonbhadra, and another 3,87,000 bottles to Shivichha Pharma. The two transactions together involved 7,53,000 bottles.
The defence argued that the cough syrup contained only 0.2% codeine and therefore fell within the exemption under Entry 35 of the 1985 notification. It was also submitted that the applicant held valid drug licences when the transactions took place.
The State, however, alleged that the two purchasing firms were not conducting genuine pharmaceutical business and that the consignments were diverted to other locations. It relied on transport records, financial transactions, recovered documents and statements recorded during the investigation.
Court’s Observation
The Court held that permitted codeine content alone does not automatically provide protection under the NDPS Act. The exemption applies where the preparation satisfies the prescribed limits and is established for therapeutic practice and is dealt with for medicinal use.
The Court specifically answered that codeine-based cough syrup with permitted codeine content would not be treated as a narcotic substance when sold or transported for medicinal use. But where such syrup is stocked, sold or transported for purposes such as intoxication, it would be treated as a codeine preparation falling within the category of manufactured drugs under the NDPS Act.
The Court further relied on the principle that the entire mixture is considered while determining quantity under the NDPS Act.
Decision
While considering Bhola Prasad’s individual bail plea, the Court noted that the case diary indicated that the consignments shown for delivery at Sonbhadra were allegedly transported elsewhere and that substantial quantities were subsequently recovered during transportation. The Court also noted the material concerning the purchaser firms and the alleged diversion of the syrup.
The Court concluded:
“In view of above, this Court is not inclined to grant bail to the applicant. Therefore, his bail application is rejected.”
Accordingly, Criminal Misc. Bail Application, was rejected.
Case Details
- Case Title: Bhola Prasad v. State of U.P.
- Case Number: Criminal Misc. Bail Application No. 418 of 2026
- Judge: Justice Arun Kumar Singh Deshwal
- Decision Date: September 1, 2026








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