Madhya Pradesh Cough syrup deaths: ED attaches assets of Coldrif promoter in Chennai

New Delhi: Two flats in Chennai belonging to the promoter of Sresan Pharmaceuticals, the manufacturer of Coldrif cough syrup linked to the death of at least 20 children in Madhya Pradesh, have been attached under the anti-money laundering law, the Enforcement Directorate said on Wednesday.

The assets, located at Kodambakkam in Tamil Nadu's capital city, are owned by G Ranganathan and his family members, it said in a statement.

The value of the flats is Rs 2.04 crore, the statement said.

Ranganathan was arrested by Madhya Pradesh Police in October.

The agency alleged Sresan Pharma indulged in "rampant unfair trade practices to suppress its manufacturing costs and increase profits which are nothing but proceeds of crime (under the Prevention of Money Laundering Act)."

Probe found 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.

Though the officials of the Tamil Nadu Drugs Control Department were in frequent touch with the proprietor of Sresan Pharma, the annual inspections mandated as per the Drug and Cosmetic Rules, were "not" conducted, it claimed.

The ED booked a money laundering case against the accused taking cognisance of two FIRs, one filed by the Madhya Pradesh Police and other by the Tamil Nadu Police.

The MP Police complaint alleged that Coldrif contained toxic glycol compounds and caused multiple incidents of acute renal failure in children leading to the death of at least 20 children in the state.

Laboratory findings confirmed the presence of 'high' concentrations of Diethylene Glycol (DEG) and Ethylene Glycol (EG), far beyond the safe limit, according to the police FIR.

"The negligent and adulterated manufacturing practices adopted by Sresan Pharma manufacturer led to the poisoning of the cough syrup," as per the ED which quoted the police FIR.

The second complaint which the ED took cognisance of was filed by the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) against P U Karthikeyan, director in-charge of the TNFDA (Tamil Nadu food and Drug Administration) in an alleged bribery case.

Karthikeyan was arrested by the DVAC in July.

The two states suspended two drug inspectors each apart from a FDA deputy director of MP. Tamil Nadu also ordered the closure of the accused pharma company after the deaths.