Enforcement Directorate Seizes Assets Linked to Cough Syrup Deaths in Madhya Pradesh
ED Takes Action Against Sresan Pharmaceuticals
On Tuesday, the Enforcement Directorate (ED) took significant steps by seizing two apartments in Chennai owned by the proprietor of Sresan Pharmaceuticals. This company is the producer of Coldrif cough syrup, which has been implicated in the tragic deaths of 25 children in Madhya Pradesh.
The properties, situated in Kodambakkam and valued at approximately Rs 2 crore, were confiscated under the Prevention of Money Laundering Act. This action follows an investigation initiated by two first information reports filed by the Madhya Pradesh Police and the Tamil Nadu drugs controller.
On October 9, G Ranganathan, the owner of Sresan Pharmaceuticals, was arrested in Chennai, along with six others associated with the syrup's distribution chain.
The ED has reported that the company utilized industrial-grade raw materials instead of the required pharmaceutical-grade ingredients and failed to conduct adequate quality checks.
According to the agency, these materials were procured in cash without invoices to evade record-keeping.
The ED further accused the firm of engaging in widespread unfair trade practices aimed at reducing manufacturing costs and boosting profits, which they classified as proceeds of crime.
Previously, the agency conducted searches at ten locations linked to Sresan Pharmaceuticals, drug control officials, licensing agents, and others, gathering evidence related to the company's financial transactions and substandard manufacturing practices.
In addition to Madhya Pradesh, reports of fatalities have also emerged from Rajasthan. Several children suffering from fever and cold consumed the Coldrif syrup, leading to symptoms such as vomiting and difficulty urinating.
The first reported death occurred on September 2.
Sresan Pharmaceuticals, located in Kancheepuram district of Tamil Nadu, produced the Coldrif syrup.
On October 2, the Tamil Nadu drugs control director discovered that samples of Coldrif did not meet quality standards. Just three days later, Madhya Pradesh reported that one sample contained 48.6% diethylene glycol, far exceeding the permissible impurity limit of 0.1%. Drug officials indicated that even trace amounts of this chemical are unsafe and should ideally be absent from any syrup intended for consumption.
Two drug inspectors from Tamil Nadu were suspended for neglecting to perform quality checks on the drugs manufactured by Sresan Pharmaceuticals over the past two years.
The Tamil Nadu government has also revoked the manufacturing license of the company and ordered its closure.
In the wake of these deaths, the formulation has been banned in several states, including Tamil Nadu and Madhya Pradesh.
The World Health Organization issued a medical alert on October 13 regarding three cough syrups, including Coldrif, that were found to contain diethylene glycol beyond safe limits, a substance linked to severe kidney and liver failure.