Major action in Coldrif cough syrup case, two flats of Ranganathan and his family seized:

News Topical, Digital Desk : The ED investigation into the deadly Coldrif cough syrup case, which killed 20 children in Madhya Pradesh, has found that the manufacturer of the syrup used industrial-grade raw materials instead of pharma-grade ones to prepare the medicine.

The Enforcement Directorate (ED) said on Wednesday that it had attached two flats belonging to Ranganathan and his family members in Chennai. These properties are located in Kodambakkam in the Tamil Nadu capital and are worth Rs 2.04 crore.

The ED claimed that officials of the Tamil Nadu Drugs Control Department were in constant touch with G Ranganathan, owner of the accused company, Chennai-based Srisan Pharmaceuticals, but the mandatory annual inspection of the firm was not conducted. Ranganathan was arrested by the Madhya Pradesh police in October.

The agency alleged that Srisan Pharma resorted to large-scale unfair trade practices to reduce its manufacturing costs and increase profits, which is nothing but proceeds of crime under the Money Laundering Act.

The investigation found that the manufacturer used industrial-grade raw materials, rather than pharma-grade raw materials, in the manufacture of the drugs without proper quality checks. The ED said such materials were being purchased in cash without invoices to avoid fabricating records.