This latest escalation by ED builds on a troubling pattern of graft within the Tamil Nadu Drug Control Department, which was highlighted this July, when a senior official was caught red-handed taking a bribe
Cough syrup case: ED raids trace bribe trail from July corruption bust
ED is taking cognisance of two FIRs to initiate its probe; first is on cough syrup case linked to 24 deaths; second is corruption case involving a TN drug official
The Enforcement Directorate's (ED) coordinated raids across seven premises in Chennai today (October 12), targeting Sresan Pharmaceuticals and senior Tamil Nadu drug control officials, can be traced back to a corruption scandal that surfaced in July 2025.
In this scandal, Tamil Nadu Drugs Control Department's acting director PU Karthikeyan was caught red-handed accepting a Rs 25,000 bribe for expediting a manufacturing license.
Two FIRs
ED is conducting these raids taking cognisance of two FIRs as predicate offences to initiate its investigation. The first is an FIR registered by the Madhya Pradesh Police in connection with the contaminated cough syrup which is linked to 24 child deaths.
The second FIR pertains to a corruption case filed by Tamil Nadu’s Directorate of Vigilance and Anti-Corruption (DVAC) in July against PU Karthikeyan, the then acting Director of the Tamil Nadu Drug Control Department.
Troubling pattern of graft
This latest escalation builds on a troubling pattern of graft within the Tamil Nadu Drug Control Department, which was highlighted this July.
In this case, on July 24, PU Karthikeyan, was caught red-handed by the DVAC accepting a Rs 25,000 bribe to fast-track a license for a Vellore-based herbal cosmetics manufacturing. He was subsequently arrested by the DVAC.
Also read: Cough syrup deaths: TN govt not cooperating, it needs to take 'concrete steps', says MP CM Yadav
The complainant, Vellore businessman S Saravanan, had already paid the Rs 20,000 to the official but faced fabricated "queries" and delays until he trapped the official in a sting operation. Karthikeyan's arrest underscored how "formalities", an euphemism for bribes, were routinely exchanged to expedite dubious drug approvals, setting the stage for regulatory failures that led to tragedies like the Coldrif disaster.
Coldrif tragedy
Meanwhile, the Coldrif tragedy erupted in early October when tests revealed the syrup contained alarmingly high levels of diethylene glycol – a toxic industrial solvent. It was as high as 48 per cent, far exceeding the permissible 0.1 per cent limit.
Marketed for children's cold and cough relief, the product was linked to at least 19 fatalities in Chhindwara district alone, with the toll climbing to 22 amid ongoing probes.
Sreesan Pharma, licensed since 2011 in Kanchipuram, operated for over a decade with glaring violations: deplorable factory conditions, not complying with Good Manufacturing Practices (GMP), and failure to register on the national 'Sugam' portal.
The Central Drugs Standard Control Organisation (CDSCO) inspections in early October exposed these red flags, including the firm's absence from federal databases and ignoring audit requests. Tamil Nadu's Food and Drug Administration (TNFDA) dragged its feet, withholding toxic analysis results and skipping a joint inspection on October 3, fuelling accusations of regulatory complicity.
Nexus suspected
In response, health minister Ma Subramanian announced the suspension of two senior drug inspectors on October 9 for failing to conduct mandatory quality checks. The state has since moved to permanently revoke Sreesan Pharma's license, with criminal proceedings underway.
Also read: Lapses in India’s drug regulatory structure, what needs to change: Dr Kafeel Khan
As of late Monday evening, ED teams have seized digital records, financial documents, and communication logs from the raided sites, pointing to a possible nexus between the pharma firm and regulatory insiders, officials confirmed.
No arrests were made during the searches, but sources suggest the focus is on tracing illicit funds from license approvals and substandard drug sales. The operation, which began at dawn, is ongoing, with ED coordinating with Madhya Pradesh authorities, who currently have Ranganathan in custody.
Health activists and Opposition leaders in Tamil Nadu have slammed the raids as "too little, too late," demanding a full overhaul of the drug control apparatus.
The World Health Organization has also flagged India's regulatory gaps in cough syrup safety, echoing global concerns after similar scandals in 2022-23.
