Coldrif cough syrup case: ED attaches promoter's assets worth over Rs 2 crore in Chennai
The Enforcement Directorate has attached Rs 2.04 crore worth of properties belonging to Sresan Pharmaceutical's proprietor in the Coldrif adulterated cough syrup case that claimed the lives of more than 20 children.
The Enforcement Directorate (ED) has seized immovable assets valued at Rs 2.04 crore belonging to G Ranganathan, the proprietor of Sresan Pharmaceutical Manufacturer, as part of its money laundering probe tied to the Coldrif adulterated cough syrup tragedy. More than 20 children had lost their lives after consuming the contaminated medicine. Officials said the attached properties include two residential flats located in Kodambakkam in Chennai, which are owned by Ranganathan and his family members. The action was taken on December 2 under the Prevention of Money Laundering Act of 2002.
Investigation triggered by two FIRs
The ED initiated its probe based on FIRs filed in Madhya Pradesh and Tamil Nadu. The first FIR, registered by Madhya Pradesh Police, booked Ranganathan under Section 105 of the Bharatiya Nyaya Sanhita 2023 for allegedly manufacturing and selling adulterated Coldrif cough syrup that led to the deaths of several children. Laboratory reports highlighted the presence of toxic compounds including Diethylene Glycol at 48.6 per cent weight per volume and Ethylene Glycol at 46.28 per cent, far exceeding permissible limits. The consumption of this syrup resulted in multiple cases of acute renal failure among children.
A second FIR, filed by the Chennai Anti-Corruption Bureau, named PU Karthigeyan, Director (in charge) and Joint Director of the Drugs Control Department, under Section 7 of the Prevention of Corruption (Amendment) Act of 2018. The complaint accused him of corruption within the regulatory department.
ED flags rampant violations and unfair trade practices
According to the agency, Sresan Pharmaceutical Manufacturer engaged in severe violations to cut manufacturing costs and inflate profits. The ED stated that these gains qualify as Proceeds of Crime. Investigators found that the company allegedly used industry-grade raw materials for making medicines instead of approved pharma-grade components and skipped essential quality checks. The raw materials were reportedly bought in cash without invoices to avoid documentation.
The ED further alleged that officials of the Tamil Nadu Drugs Control Department maintained regular contact with the manufacturer but failed to conduct mandatory annual inspections as required under the Drugs and Cosmetics Rules.
Searches uncover key evidence
Earlier, the agency searched 10 locations linked to Ranganathan, Drug Control Department officials, licensing agents and others. During these operations, the ED recovered crucial documents and material tied to alleged financial irregularities and adulterated manufacturing processes.
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