NEW DELHI: The Enforcement Directorate (ED) has attached assets of the promoter of Sresan Pharmaceuticals, the manufacturer of Coldrif cough syrup, in Chennai. The pharmaceuticals are linked to the death of at least 20 children in Madhya Pradesh.
The agency has provisionally attached immovable properties worth Rs. 2.04 crore belonging to G. Ranganathan, proprietor of Sresan Pharmaceutical Manufacturer, on Tuesday under the Prevention of Money Laundering Act (PMLA), 2002.
“The provisionally attached properties comprise two residential flats at Kodambakkam, Chennai, owned by G Ranganathan and his family members,” the agency said. The agency initiated a probe under PMLA on the basis of two FIRs.
The first case was registered by Madhya Pradesh Police against G. Ranganathan, proprietor of Sresan Pharmaceutical Manufacturer, 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 contained toxic glycol compounds and caused multiple incidents of acute renal failure in children following consumption.
“Laboratory findings confirmed the presence of high concentrations of Diethylene Glycol (DEG) 48.6% w/v and Ethylene Glycol (EG) 46.28% w/v, which are far beyond the safe limit,” said the agency sleuths, adding that the negligent and adulterated manufacturing practices adopted by Sresan Pharmaceutical led to the poisoning of the Coldrif cough syrup.
The second case was registered by the Anti-Corruption Bureau in Chennai against PU Karthigeyan, Director and Joint Director of Drugs Control, Drugs Control Department, under section 7 of the Prevention of Corruption (Amendment) Act, 2018, alleging corruption in the Drugs Control Department.
During the probe, ED found 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.
“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 being purchased in cash without invoices to avoid the creation of records,” the agency said.
The probe 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.
The federal agency had earlier conducted search operations in 10 locations connected with the proprietor of Sresan Pharmaceutical, Drug Control Authorities, agents involved in license procurement and others.
“During the search operations, various key evidence related to the financial activities, adulterated manufacturing were seized,” the agency said.
