Chennai: The Enforcement Directorate (ED) started a series of searches in Chennai on Monday as part of a probe into money laundering linked to the dangerous “Coldrif” cough syrup controversy. This case is connected to the deaths of up to 20 youngsters in Madhya Pradesh who took the fake medicine that was said to be real.
The raids, which were done under the Prevention of Money Laundering Act (PMLA), hit seven places in Chennai. The search operations were very important since they included the homes of high-ranking officials in the Tamil Nadu drug control agency. This shows that the probe is getting bigger and going beyond the manufacturing company.
Last week, the police in Madhya Pradesh and Tamil Nadu worked together to arrest G. Ranganathan, the proprietor of Sresan Pharma Company, a Tamil Nadu-based producer. After the catastrophe, the Tamil Nadu government also did something: they fired two state drug inspectors.
Focus on Financial Connections and the Role of Officials
The ED’s involvement is a big step up, and it focuses on the money side of the issue. Officials from the ED said that the money laundering inquiry was started based on the first police investigations and is meant to look closely at the finances of Sresan Pharma and other people who are involved.
The agency’s first actions are to get the arrested owner, Ranganathan, from the Madhya Pradesh police so they may question him about the money trail and the unlawful profits that were supposedly made from making and selling the hazardous syrup.
The Tamil Nadu government, on the other hand, had already ordered Sresan Pharma to close after the fatalities. Now, it says it will soon decide whether to permanently cancel the company’s license. This move comes as the government cracks down on the making and selling of cough syrups that contain codeine and other harmful substances.
The investigation wants to find out if the selling of the dangerous substance made people rich illegally and if any government officials helped with the scheme.