NEW DELHI (Reuters) -India’s financial crime-fighting agency is searching seven sites on suspicion of money-laundering by Sresan Pharma, the cough syrup maker linked to the deaths of several children over the last month, a source told Reuters on Monday.
At least 19 children died in the central state of Madhya Pradesh after taking the syrup, banned after a test this month showed it contained levels of a toxic chemical, diethylene glycol, that were nearly 500 times the permissible limit.
The searches in Chennai, capital of the southern state of Tamil Nadu, relate to accusations of money laundering, and include the homes of top officials of the state’s drug control office, the source added.
The source sought anonymity as he was not authorised to speak to media.
Telephone calls to seek comment from company owner G. Ranganathan, who was arrested last week, went unanswered.
India, known as the ‘pharmacy of the world’, supplies 40% of generic medicines used in the United States, and more than 90% of all medicines in many African nations.
By law, India drugmakers must test each batch of raw materials and the final product.
Exports of cough syrup require further tests at government-mandated laboratories since 2023, after the deaths of more than 10 children in Cameroon, Gambia and Uzbekistan were linked to Indian syrups.
However, Coldrif, the syrup that figured in last month’s deaths, was sold only domestically.
Last week, the World Health Organisation said the South Asian nation has a “regulatory gap” in screening locally-sold medicinal syrups.
Indian authorities, who have stepped up scrutiny of such syrups since the deaths, have also warned against two others sold domestically, Respifresh and RELIFE, which were found to contain the same toxic chemical.
These are made by Shape Pharma and Rednex Pharmaceuticals, based in the western state of Gujarat, but officials of neither company responded to calls from Reuters seeking comment.
(Reporting by Nikunj Ohri; Writing by Sakshi Dayal; Editing by Tom Hogue and Clarence Fernandez)
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