ED Attaches ₹2.04 Crore Assets of Chennai Pharma Firm Owner in Toxic Cough Syrup Deaths Case

The Enforcement Directorate’s Chennai zonal office has attached assets valued at ₹2.04 crore belonging to G. Ranganathan, proprietor of Sresan Pharmaceutical Manufacturer, in connection with a money-laundering probe linked to the fatal adulteration of cough syrup supplied by the firm. The action, carried out on December 2, 2025, falls under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, the provisional attachment covers two residential flats in Kodambakkam, Chennai, owned by Ranganathan and his family members.

The investigation stems from two FIRs that qualify as scheduled offences under PMLA. The first, registered by the Madhya Pradesh Police, accuses Ranganathan of manufacturing and selling adulterated “Coldrif” cough syrup that reportedly caused the deaths of more than 20 children. The FIR, lodged under Section 105 of the Bharatiya Nyaya Sanhita, 2023 (corresponding to Section 304 of the IPC), alleges that the children suffered acute renal failure after consuming the syrup.

Laboratory analysis cited in the FIR found shockingly high concentrations of toxic industrial chemicals — Diethylene Glycol (DEG) at 48.6% w/v and Ethylene Glycol (EG) at 46.28% w/v — far above permissible safety limits. Investigators said these levels pointed to negligent and reckless manufacturing practices at the Chennai-based pharma unit.

Also Read: Sreesan Pharma Toxic Cough Syrup Case: ED Raids Seven Places In Chennai Linked To Top Tamil Nadu Drug Control Officials | Republic World

The second FIR, filed by the Chennai Anti-Corruption Bureau, names P.U. Karthigeyan, Director (in-charge) and Joint Director of Drugs Control, under Section 7 of the Prevention of Corruption (Amendment) Act, 2018. It alleges corruption and irregularities within the Drugs Control Department.

The ED said its probe uncovered widespread malpractice at Sresan Pharmaceutical, including the use of industry-grade raw materials instead of pharma-grade inputs, and procurement of these materials in cash without invoices to avoid documentation. Such actions, the agency said, were aimed at artificially lowering production costs and generating illicit profits, which it classified as “proceeds of crime”.

The agency further noted that although officials of the Tamil Nadu Drugs Control Department were in regular contact with the company’s proprietor, the statutory annual inspections mandated under the Drugs and Cosmetics Rules were not conducted.

The ED added that further investigation is underway to trace additional financial links and potential regulatory lapses.