Wed Dec 03 10:19:24 UTC 2025: News Article Summary:
Chennai Flats of Cough Syrup Manufacturer Attached in Money Laundering Probe
New Delhi, December 3, 2025: The Enforcement Directorate (ED) has seized two Chennai flats valued at ₹2.04 crore belonging to G. Ranganathan, the promoter of Sresan Pharmaceuticals. The company is under investigation for manufacturing Coldrif cough syrup, which is allegedly linked to the deaths of at least 20 children in Madhya Pradesh due to toxic levels of Diethylene Glycol (DEG) and Ethylene Glycol (EG).
The ED alleges Sresan Pharma engaged in unfair trade practices, buying industry-grade raw materials without invoices instead of the pharma-grade. This was done to cut costs and increase profits. G. Ranganathan was arrested by Madhya Pradesh Police in October.
The investigation also revealed that while Tamil Nadu Drugs Control Department officials were in contact with the company, mandated annual inspections were not conducted. The ED’s money laundering case is based on FIRs filed by both Madhya Pradesh Police and the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC), the latter concerning a bribery case involving a TNFDA official. Both Madhya Pradesh and Tamil Nadu have suspended drug inspectors and ordered the closure of Sresan Pharmaceuticals.
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