What is a drug evidence storage and chain-of-custody service in India?

It's a specialized secure warehousing and digital inventory management service for law enforcement agencies to store seized narcotics with tamper-proof containers, climate control, and audit trails. The CAG report documented 2,332 kg of seized drugs disappeared from police storage over 12 years due to poor facilities and record-keeping, creating urgent demand for compliant solutions.

How much does it cost to start a drug evidence storage business in India?

Initial investment: ₹50-150 lakhs (warehouse setup with climate control, security systems, digital inventory software, certifications). Ongoing: ₹10-25 lakhs annually for compliance, staff, insurance. MoU and Police Department approval required before operations.

Is drug evidence storage profitable in India?

Yes. Addressable market is ₹400-500 Cr annually across all Indian police departments and forensic labs. With per-unit storage fees (₹500-2,000 per kg/month) and 100+ department contracts, businesses can achieve 40-50% EBITDA margins. Growing regulatory pressure ensures sustained demand through 2026+.

What regulations apply to drug evidence storage in India?

Indian Evidence Act 1872 (chain-of-custody rules), Narcotic Drugs and Psychotropic Substances Act 1985, local Police Department MOUs, warehouse fire/safety certification (FSSAI/fire safety standards), GST registration as service provider, and state-level forensic lab compliance requirements.

Drug Evidence Storage Service India 2026 | Chain-of-Custody

AI SummaryDrug evidence storage is a ₹400-500 Cr annual market opportunity in India driven by CAG findings of 2,332 kg of seized narcotics missing from police storage. By 2026, Indian police departments and forensic labs urgently need secure, climate-controlled warehousing with digital inventory tracking and tamper-proof systems compliant with the Indian Evidence Act 1872. Entrepreneurs with logistics, compliance, or law enforcement experience can establish regional or national networks targeting state police departments, CBI, and forensic agencies.