ED Seizes Assets in Coldriph Cough Syrup Tragedy Investigation

ED's Action Against Pharmaceutical Manufacturer

The Enforcement Directorate (ED) has confiscated assets worth ₹2.04 crore belonging to G. Ranganathan, the owner of a pharmaceutical company, in connection with the money laundering investigation linked to the Coldriph cough syrup tragedy. This incident resulted in the deaths of over 20 children due to contaminated medication. The seized properties include two residential flats located in Kodambakkam, Chennai, owned by Ranganathan and his family. This action was taken on December 2 under the Prevention of Money Laundering Act, 2002.

Investigation Initiated Based on FIRs

The ED commenced its investigation based on FIRs filed in Madhya Pradesh and Tamil Nadu. The first FIR, registered by the Madhya Pradesh police, accuses Ranganathan of producing and selling adulterated Coldriph cough syrup under Section 105 of the Indian Penal Code, which led to multiple child fatalities. Laboratory reports revealed the presence of toxic compounds, including 48.6% diethylene glycol and 46.28% ethylene glycol, far exceeding permissible limits. Several cases of acute kidney failure among children were reported following the consumption of this syrup. The second FIR, filed by the Chennai Anti-Corruption Bureau, named the director (in charge) of the drug control department and the joint director, P.U. Kartigeyan, under Section 7 of the Prevention of Corruption (Amendment) Act, 2018, alleging corruption within the regulatory department.

ED Highlights Serious Violations and Unethical Practices

According to the agency, the pharmaceutical manufacturer engaged in significant violations to reduce production costs and increase profits. The ED stated that these profits qualify as proceeds of crime. Investigators found that the company allegedly used industry-grade raw materials instead of approved pharma-grade components for drug manufacturing and ignored necessary quality checks. It was reported that raw materials were purchased in cash without invoices to evade documentation.