Bottles of Coldrif.
Credit; Reuters Photo
Chennai: In a new twist, the Enforcement Directorate (ED) on Monday joined the investigation into the death of 21 children in Madhya Pradesh due to a contaminated cough syrup by conducting searches at seven locations, including at the factory that made the medicine, in Kanchipuram and Chennai under the Prevention of Money Laundering Act (PMLA).
Even as the raids were underway, the Tamil Nadu Health Department revoked all licenses awarded to Sresan Pharmaceuticals for manufacturing medicines and announced the permanent closure of its factory in Sunguvarchatiram in Kanchipuram district. The government also announced a fresh audit of pharmaceuticals companies based out of the state to check whether rules and regulations are being followed.
The searches by the ED covered the residences of G Ranganathan, the owner of the firm that produced Coldrif which led to the death of 21 children, P U Karthikeyan, who was the acting director of the Tamil Nadu Drug Control Department, and two suspended officials - Deepa Joseph and K Karthikeyan.
The factory and a warehouse of the pharmaceutical company in Kanchipuram district were also searched.
Ranganathan, who was arrested on October 9, is currently in judicial custody in Madhya Pradesh. P U Karthikeyan was arrested in July 2025 after he was caught red-handed by the sleuths of the Directorate of Vigilance and Anti-corruption (DVAC) for allegedly receiving a bribe of Rs 25,000 from a soap manufacturer for granting a license.
Sources in the ED told DH that the agency has taken cognizance of two FIRs filed by the Madhya Pradesh police over the death of 21 children and by DVAC against P U Karthikeyan in July this year as predicate offences to initiate the probe.
“We are conducting raids at seven locations in Chennai and Kanchipuram. We are probing the case under the PMLA,” the source said, adding that they will question the arrested owner of the company if needed.
During the searches, the sleuths recovered computers and other electronic devices to go through emails and inspection documents to see whether there was any deliberate oversight in monitoring the manufacturing unit.
The investigation by the ED also comes amid a blame game between the Madhya Pradesh and Tamil Nadu governments over the death of the children due to the contaminated syrup. The syrup was banned after a lab test by the TN government found that it contained 48.6 percent diethylene glycol, an industrial chemical that can cause renal failure.
The company in question – Sresan Pharmaceuticals – had been involved in several violations especially in 2021 and 2022 following which action was taken against the firm. However, lack of proper monitoring and inspection of the company since 2023 might have led to the pharmaceuticals firm continue to run without following rules and manufacture contaminated syrups.
The TN Health Department said it communicated to Madhya Pradesh on October 4, 2025, that it had stopped production at Sresan Pharmaceuticals after the lab report besides sending a report of the lab test to Drugs Controller General of India (DCGI), and Deputy Drug Controller, South Zone.
Detailing the steps it had taken after the lab results, the government recalled that it sent two show cause notices to the company, helped the MP police arrest the owner, and file a criminal case against him. “Today (13.10.2025), all licenses awarded to Sresan Pharmaceuticals have been revoked and the factory has been closed permanently,” the statement added.