What is the latest on the Sresan Pharma cough syrup case?
Synopsis
Key Takeaways
- ED has seized properties worth Rs 2.04 crore.
- Over 20 children died due to contaminated cough syrup.
- High levels of toxic chemicals discovered.
- Negligent manufacturing practices identified.
- Investigation into regulatory corruption ongoing.
Chennai, Dec 3 (NationPress) The Enforcement Directorate (ED) at the Chennai Zonal Office has provisionally seized immovable assets valued at Rs 2.04 crore belonging to G. Ranganathan, owner of M/s Sresan Pharmaceutical Manufacturer. This action is part of an investigation into a money laundering case tied to the contaminated cough syrup incident that resulted in the demise of over 20 children.
The seizure, executed on December 2 under the Prevention of Money Laundering Act (PMLA), includes two residential apartments located in Kodambakkam, Chennai, held by Ranganathan and his family. The ED's action follows two FIRs that initiated the money laundering inquiry.
The first FIR was lodged by the Madhya Pradesh Police against Ranganathan for producing and distributing the adulterated Coldrif cough syrup, which led to multiple fatalities.
This case is registered under Section 105 of the Bharatiya Nyaya Sanhita (equivalent to Section 304 of the IPC).
Investigations disclosed that the cough syrup, produced at Sresan Pharma's facility in Chennai, had alarmingly high levels of hazardous chemicals - Diethylene Glycol (DEG) at 48.6% w/v and Ethylene Glycol (EG) at 46.28% w/v. These substances, when ingested, can lead to acute renal failure. Laboratory tests confirmed their presence at levels significantly exceeding safe limits.
More than 20 children in Madhya Pradesh died after consuming the tainted syrup, with many others sustaining severe kidney damage. Investigators have determined that Sresan Pharma's negligent and substandard manufacturing practices were directly responsible for the poisoning.
The second FIR was filed by the Chennai Anti-Corruption Bureau (ACB) against P.U. Karthigeyan, the Director (in-charge) and Joint Director of the Tamil Nadu Drugs Control Department, under Section 7 of the Prevention of Corruption (Amendment) Act, 2018.
The allegations involve corruption and irregularities in drug oversight, including inadequate supervision in the licensing and inspection of manufacturing facilities.
The ED claims that Sresan Pharmaceutical engaged in widespread unfair trade practices to minimize production costs and maximize profits, which the agency categorizes as Proceeds of Crime (POC).
Further investigation revealed that the company utilized industry-grade raw materials instead of required pharma-grade inputs, purchasing them in cash to avoid leaving a financial footprint.
Despite ongoing communication between the company and officials from the Tamil Nadu Drugs Control Department, obligatory annual inspections under the Drugs and Cosmetics Rules were allegedly not carried out.
The ED previously conducted search operations at ten locations associated with Sresan Pharma's owner, drug control officials, licensing agents, and others.
Crucial documents related to financial transactions and evidence of substandard manufacturing practices were confiscated during these operations. The ED has stated that the investigation is ongoing.