New Delhi [India], December 3 : The Enforcement Directorate (ED) has attached immovable properties worth Rs 2.04 crore belonging to G Ranganathan, proprietor of Sresan Pharmaceutical Manufacturer, under charges of money laundering linked to the selling of Coldrif adulterated cough syrup, which caused deaths of more than 20 children, the agency said on Wednesday.
ED's Chennai zonal office has attached these properties, comprising two residential flats at Kodambakkam in Chennai, owned by G Ranganathan and his family members. These properties were attached on December 2 under the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated investigations under PMLA based on two FIRs involving scheduled offences.
The FIR registered by Madhya Pradesh Police against Ranganathan under Section 105 of Bharatiya Nyaya Sanhita, 2023 (BNS, 2023) (Section 304 of IPC), for manufacturing and selling adulterated cough syrup, which caused the deaths of more than 20 children.
The FIR alleged that consumption of Coldrif cough syrup manufactured by Sresan Pharmaceutical Manufacturer, Chennai, contained toxic glycol compounds and caused multiple incidents of acute renal failure in children after its consumption. Laboratory findings confirmed the presence of high concentrations of Diethylene Glycol (DEG) 48.6 per cent weight/volume and Ethylene Glycol (EG) 46.28 per cent weight/volume, which are far beyond the safe limit.
The negligent and adulterated manufacturing practices adopted by Sresan Pharmaceutical Manufacturer, Chennai, led to the poisoning of the Coldrif cough syrup.
Another FIR was registered by the Chennai ACB against P.U. Karthigeyan, Director (i/c) and Joint Director of the Drugs Control Department, under section 7 of the Prevention of Corruption (Amendment) Act, 2018, alleging corruption in the Drugs Control Department.
ED said its investigation revealed that Sresan Pharmaceutical Manufacturer has "indulged in rampant unfair trade practices to suppress its manufacturing costs and increase profits, which are nothing but Proceeds of Crime (POC)."
"It is revealed in the investigation that the manufacturer used industry-grade raw materials in the manufacturing of medicines instead of pharma-grade raw materials without proper quality checks. Such materials were purchased in cash without invoices to avoid creating records. The investigation further revealed that though the officials of the Tamil Nadu Drugs Control Department were in frequent touch with the proprietor of Sresan Pharmaceutical, the annual inspections mandated as per the Drug and Cosmetic Rules were not conducted," said the agency in a statement.
ED had earlier conducted searches at 10 locations connected to the proprietor of Sresan Pharmaceutical, the Drug Control Authorities, agents involved in license procurement, and others.
During the search operations, various key pieces of evidence related to the financial activities and adulterated manufacturing were seized.