The Enforcement Directorate has attached two residential flats worth ₹2.04 crore belonging to G. Ranganathan, the owner of the Chennai-based Sresan Pharmaceuticals, the manufacturer of the Coldrif cough syrup that has been linked to the death of at least 22 children.
The deaths in Madhya Pradesh are due to suspected kidney failure.
The assets, located at Kodambakkam in Chennai, are owned by Ranganathan and his family members. Ranganathan was arrested by Madhya Pradesh police in October. The properties were attached under the Prevention of Money Laundering Act (PMLA).
The agency had initiated a probe under the PMLA on the basis of two FIRs. The first case was registered by the Madhya Pradesh police against Ranganathan for manufacturing and selling adulterated cough syrup.
A probe revealed that the Coldrif syrup had been distributed across multiple states in India. The syrup was found to contain lethal levels of diethylene glycol, a toxic substance. The contamination led to acute renal failure among children in Madhya Pradesh’s Chhindwara district, resulting in the deaths of 22 kids, mostly under five.
“Laboratory findings confirmed the presence of high concentrations of diethylene glycol and ethylene glycol far beyond the safe limit,” said an ED official, adding that negligent and adulterated manufacturing practices adopted by Sresan Pharmaceutical led to the poisoning of the Coldrif cough syrup.
The agency has alleged that Sresan Pharma indulged in “rampant unfair trade practices to suppress its manufacturing costs and increase profits, which are nothing but proceeds of crime (under the PMLA)”. A probe found that the manufacturer used industry-grade raw materials in the manufacture of medicines instead of pharma-grade raw materials without proper quality checks.
The second complaint, which the ED took cognisance of, was filed by the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) against P.U. Karthikeyan, the director-in-charge of the Tamil Nadu Food and Drug Administration (TNFDA), in an alleged bribery case.
Karthikeyan was arrested by the DVAC in July.
Sources said Sresan Pharmaceuticals had obtained a licence in 2011 and allegedly continued operations for over a decade despite multiple violations of national drug safety rules. Following the deaths in Madhya Pradesh, the Tamil Nadu government suspended two drug inspectors and a deputy director of the TNFDA and also ordered the closure of the accused pharma company after the deaths.
The investigation by the ED, sources said, is aimed at exposing the possible nexus of corruption, negligence and regulatory failure within Tamil Nadu’s drug administration. A detailed probe is underway to identify all those involved in the supply chain and regulatory negligence, said an official.