ED Attaches ₹2.04 Crore Properties Of Chennai Pharma Firm Owner Linked To Contaminated Cough Syrup Case

Chennai: The Directorate of Enforcement (ED), Chennai Zonal Office, has provisionally attached immovable properties worth Rs. 2.04 crore belonging to G Ranganathan, proprietor of Sresan Pharmaceutical Manufacturer, which was in the headlines recently for manufacturing contaminated cough syrup which led to the death of some children in Madhya Pradesh.

The action was taken on Tuesday under the Prevention of Money Laundering Act (PMLA), 2002. The provisionally attached properties comprises of two residential flats at Kodambakkam, Chennai owned by Ranganathan and his family members.

The ED on Wednesday said it had initiated investigations under PMLA on the basis of an FIR registered by Madhya Pradesh Police against Ranganathan for manufacturing and selling adulterated cough syrup which caused deaths of more than 20 children. The FIR alleged consumption of Coldrif cough syrup manufactured by his firm contained toxic glycol compounds and caused multiple incidents of acute renal failure in children after its consumption. Laboratory findings confirmed the presence of high concentration of Diethylene Glycol (DEG) 48.6% w/v and Ethylene Glycol (EG) 46.28% w/v which are far beyond the safe limit. The negligent and adulterated manufacturing practices led to the poisoning of the Coldrif cough syrup.

Besides, another FIR was registered by the Chennai ACB against P U Karthigeyan, the Director in-charge of the Drugs Control, Drugs Control Department under Section 7 of Prevention of Corruption (Amendment) Act, 2018.

“The ED investigation revealed that M/s 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 creation of records,” the ED said. The investigation further revealed though the officials of the Tamil Nadu Drugs Control Department were in frequent touch with Ranganathan, the annual inspections mandated as per the Drug and Cosmetic Rules, were not conducted.

The agency had earlier conducted search operations in 10 locations connected with the firm’s proprietor, its agents involved in license procurement and others. During the search operations, various key evidences related to the financial activities, adulterated manufacturing were seized, the ED said.

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