In a significant development in the tragic cough syrup case linked to the deaths of 22 children in Madhya Pradesh, the Enforcement Directorate (ED) has provisionally attached immovable properties valued at approximately ₹2.04 crore. The assets belong to G. Ranganathan, the proprietor of Chennai-based Sresan Pharmaceutical.
Properties Attached Under PMLA
The attached assets, seized under the Prevention of Money Laundering Act (PMLA), 2002, include two residential flats located in Chennai's Kodambakkam area. These properties are owned by Ranganathan and his family members. The action follows an intensive money laundering investigation triggered by the deadly incident.
The Deadly Lapse and Unfair Trade
The central agency has accused Sresan Pharmaceutical of engaging in severely unfair trade practices. To drastically cut manufacturing costs, the company allegedly sourced industrial-grade raw materials instead of mandated pharma-grade materials for producing its cough syrup, 'Coldrif'. Shockingly, these materials were procured without proper invoices, deliberately bypassing quality checks and regulatory documentation.
The ED's probe originates from two First Information Reports (FIRs). One was filed by the Madhya Pradesh police, and the other by the anti-corruption branch of the Chennai police. The second FIR notably names PU Karthigeyan, the then director (in-charge) and joint director of the drugs control department, under the Prevention of Corruption (Amendment) Act.
Collusion and Regulatory Failure
Investigations have revealed a disturbing nexus. ED stated that Ranganathan was frequently in touch with officials from the drugs control department. Despite this communication, the mandatory annual inspections required under the Drugs and Cosmetics Rules were never conducted at the manufacturing unit.
Earlier, the ED had carried out searches at 10 locations connected to the manufacturer, suspended drug control officials, and licence agents. These raids unearthed substantial evidence pertaining to financial irregularities and the adulterated production practices that led to the catastrophe.
The Tragic Origin of the Probe
The entire case unfolded in August and September when children in Madhya Pradesh were hospitalized with acute kidney failure. Inquiries pinpointed the cause to the consumption of 'Coldrif' cough syrup, which was distributed in government hospitals.
The substandard manufacturing unit was traced to Kancheepuram. Laboratory tests on the 'Coldrif' syrup delivered a horrifying finding: the sample contained 48.6% Diethylene Glycol. This industrial chemical, toxic to humans, was used as a cheap substitute for pharmaceutical-grade glycerin.
This case highlights critical gaps in drug regulatory mechanisms and the devastating human cost of corporate greed and regulatory collusion. The ED's asset attachment is a step towards unraveling the financial trail of the alleged crime.
