The Enforcement Directorate (ED) on Monday launched raids in Chennai in connection with a money laundering investigation related to Coldrif cough syrup, linked to the deaths of children in Madhya Pradesh, people familiar with the development said.
The raids under the prevention of money laundering act (PMLA) were carried out at seven locations in Chennai, including the residences of top officials of Tamil Nadu drug control office.
The owner, G Ranganathan, of Tamil Nadu-based Sresan Pharma Company was arrested by Madhya Pradesh and Tamil Nadu police last week while two state drug inspectors were suspended by the Tamil Nadu government.
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The Tamil Nadu government, which had ordered the closure of the firm after the spurious cough syrup Coldrif claimed many lives in Madhya Pradesh, announced that it would soon decide on permanently cancelling the company’s licence.
As many as 20 children from Madhya Pradesh died after consuming the alleged toxic cough syrup made in Sresan pharma company.
{{/usCountry}}As many as 20 children from Madhya Pradesh died after consuming the alleged toxic cough syrup made in Sresan pharma company.
{{/usCountry}}ED officials said they have launched a money laundering probe into the matter based on the police investigation and will look into the finances of the company and others.
Officials added that Ranganthan will also be questioned after taking his custody from the Madhya Pradesh police.