Killer cough syrup: ED raids Kanchi pharma, suspended officials’ residences
The raids were conducted at various locations, including the residential and company premises of Ranganathan and the residences of senior drug control officials PU Karthikeyan and Deepa Joseph, who were placed under suspension.
CHENNAI: Days after Madhya Pradesh police arrested G Ranganathan, owner of Sresan Pharmaceuticals in Kancheepuram, following the death of over 20 kids after consuming cough syrup produced by the pharma, the Enforcement Directorate (ED) on Monday conducted simultaneous raids at 7 locations across Tamil Nadu.
The raids were conducted at various locations, including the residential and company premises of Ranganathan and the residences of senior drug control officials PU Karthikeyan and Deepa Joseph, who were placed under suspension.
Karthikeyan, who was working as the joint director, was placed under suspension following a raid at his Anna Nagar house after he allegedly received a bribe of Rs 25,000. Deepa Joseph, an assistant director, was placed under suspension following the Sresan Pharma case that came into light.
The searches are part of a money laundering probe, believed to be linked to alleged irregularities in the licensing and quality control of pharmaceutical products, sources said.
Ranganathan's company is under the scanner for suspected violations of manufacturing and safety standards. In a move that highlights alleged collusion between regulators and the regulated, the ED teams raided the homes of two senior drug control officials.
The raids at the officials' residences are seen as a direct investigation into the "proceeds of crime" that may have been generated through alleged bribes for granting favours, licenses, or turning a blind eye to regulatory breaches.
The ED is likely scrutinising financial documents, property records, and digital evidence seized during the raids to uncover a larger network of corruption and money laundering.
As of now, the Enforcement Directorate has not released an official statement detailing the specifics of the case or the findings from the raids.
It may be recalled that after the Sresan mess, the Tamil Nadu government has ordered an inspection of over 400 pharma companies functioning across the state.