Cough syrup deaths: ED raids 7 locations in Chennai linked to Sresan pharma

The Enforcement Directorate (ED) on Monday, 13 October, carried out searches at seven locations across Chennai, including the residence of S. Ranganathan, owner of Sresan Pharmaceuticals, and offices of senior officials from the Tamil Nadu Drug Control Department, as part of an ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA).

The action comes in the wake of a major breakthrough in the Madhya Pradesh cough syrup tragedy, which claimed the lives of at least 22 children in Chhindwara district after they consumed the company’s Coldrif cough syrup.

The ED’s probe follows the arrest of G. Ranganathan (75), owner of Sresan Pharmaceuticals, by a Special Investigation Team (SIT) from Madhya Pradesh, aided by Chennai Police on 9 October. Ranganathan had been absconding since the deaths were reported, but authorities traced him through electronic surveillance and apprehended him during a late-night raid around 1:30 am at his Kodambakkam residence.

Following his arrest, police raided the company’s manufacturing facility in Kancheepuram, seizing production records, drug samples, and regulatory documents critical to the investigation.

Cough syrup deaths: Rahul Gandhi likely to visit MP’s Chhindwara

Investigations have revealed over 300 safety and regulatory violations at the plant, including the use of non-pharmaceutical grade chemicals. Laboratory tests in Chennai confirmed that the cough syrup contained 48.6 per cent diethylene glycol (DEG), a highly toxic industrial solvent known to cause irreversible kidney failure if ingested.

Officials suspect that substandard ingredients were deliberately used to cut costs, directly leading to the fatal contamination.

The ED raids aim to uncover possible financial irregularities, fund diversions, and collusion between Sresan Pharmaceuticals and state drug control officials. Investigators are examining whether illegal proceeds were laundered through shell companies and benami accounts associated with Ranganathan’s network.

This marks the third major ED action against pharmaceutical firms in Chennai in recent months:

• In September, premises linked to Arvind Remedies Ltd were raided in connection with a Rs 637-crore bank loan fraud.

• In April 2024, the ED searched 30 locations across Tamil Nadu in connection with the Jaffer Sadiq drug trafficking and money laundering case, exposing an international narcotics network.

Authorities say more arrests are expected as the ED continues to piece together the financial and administrative failures that contributed to one of the worst recent pharmaceutical tragedies in the country.

The ongoing investigations highlight deep lapses in regulatory oversight and the urgent need for stricter enforcement of safety and compliance norms in India’s pharmaceutical sector.

With IANS inputs