New Delhi: The Enforcement Directorate (ED) has found that the manufacturer of ColdRif syrup, which allegedly caused the deaths of at least 20 children in Madhya Pradesh, used industrial-grade raw materials instead of pharma-grade ingredients, bypassing proper quality checks, the agency said on Wednesday.
The probe further revealed that officials of the Tamil Nadu Drugs Control Department were in "frequent touch" with G Ranganathan, proprietor of the Chennai-based Sresan Pharmaceuticals, but mandated annual inspections of the firm were not conducted.
In a move under the Prevention of Money Laundering Act, the ED attached two flats in Chennai belonging to Ranganathan and his family members, located in Kodambakkam, with a total estimated value of Rs 2.04 crore.
Ranganathan was arrested by Madhya Pradesh Police in October. The ED alleged that Sresan Pharma engaged in rampant unfair trade practices, suppressing manufacturing costs to increase profits, which constitute proceeds of crime under the law.
The investigation found that the company purchased industrial-grade materials in cash without invoices, avoiding the creation of records. The ED noted that although the Tamil Nadu Drugs Control Department officials were in frequent contact with Ranganathan, the annual inspections required under the Drug and Cosmetic Rules were not carried out.
The ED has filed a money laundering case against the accused, taking cognisance of two FIRs—one filed by Madhya Pradesh Police and another by Tamil Nadu Police.
The Madhya Pradesh Police complaint alleged that ColdRif contained toxic glycol compounds, leading to acute renal failure in children and the deaths of at least 20 children in the state. Laboratory tests confirmed high concentrations of Diethylene Glycol (DEG) and Ethylene Glycol (EG), far exceeding safe limits.
"The negligent and adulterated manufacturing practices adopted by Sresan Pharma led to the poisoning of the cough syrup," the ED said, quoting the police FIR.
The second FIR, taken cognisance of by the ED, was filed by the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) against P U Karthikeyan, director in-charge of the Tamil Nadu Food Safety and Drug Administration, in an alleged bribery case. Karthikeyan was arrested by the DVAC in July.
Following the deaths, Tamil Nadu ordered the closure of Sresan Pharmaceuticals and suspended two drug inspectors, while Madhya Pradesh also suspended two drug inspectors and a Food and Drug Administration deputy director.
With PTI inputs