Multiple teams of the Enforcement Directorate (ED) are Monday conducting searches at seven different locations in Chennai linked to Sresan Pharmaceuticals, the manufacturer of Coldrif which has been linked to the deaths of several children, as part of a money laundering probe.
Several children in Chhindwara’s Parasia town in Madhya Pradesh fell ill and suffered kidney damage, allegedly after consuming Coldrif. At least 22 of them have died.
The cough syrup was found to contain lethal levels of diethylene glycol, and it has since been banned in multiple states.
“Teams of the ED are conducting searches at seven premises linked to Sresan Pharmaceutical Manufacture and premises, including the residence of top officials of the Tamil Nadu drug control office,” a source said.
“ED is searching key employees of Sresan Pharma and a few officers of the Drug Control Department, including the director (in-charge), who was caught red-handed accepting a bribe to trace the proceeds of crime and the people involved,” the source added.
The Madhya Pradesh Police registered a First Information Report (FIR) against Sresan Pharma, alleging that Coldrif was adulterated and was a direct cause for the death of 21 children. The Tamil Nadu Government also suspended two officers of the Drug Control Department, who were tasked with conducting inspections but allegedly failed to do so over the last two years.
After the director (In charge) of the Drugs Control Department, Government of Tamil Nadu, was arrested by the Anti-Corruption Bureau, an FIR was registered with the scheduled offence.
“Both FIRs had scheduled offences, and ED registered the Enforcement Case Information Report (ECIR). The profits derived from the sale of the adulterated cough syrup, which resulted in the death of 21 children, are proceeds of crime. The drug officers who did not do regular inspections and allowed production of adulterated cough syrup failed in the discharge of public duties,” a source said.
Sresan Pharmaceuticals owner G Ranganathan was arrested at his apartment in Kodambakkam, Chennai, by a seven-member team from the Madhya Pradesh Police last week. He was later produced before a court in Madhya Pradesh’s Chhindwara, which sent him to 10 days’ police custody.
“Ranganathan has argued in court that he had been manufacturing the cough syrup for years without any issues,” a source said.