ED Attaches ₹2.04 Crore Properties of Sresan Pharma Owner

ED Attaches ₹2.04 Crore in Properties of Sresan Pharma Owner in Toxic Cough-Syrup Probe

The Enforcement Directorate (ED) has provisionally attached immovable assets valued at ₹2.04 crore belonging to the proprietor of Sresan Pharmaceutical, a company under investigation for allegedly manufacturing a toxic cough syrup linked to multiple child deaths. The attached assets consist of two residential flats in Chennai, held by the owner and his family.

Why ED Took Action

The attachment follows allegations that the company produced cough syrup using substandard and industrial-grade chemicals instead of approved pharmaceutical-grade materials. The contaminated formulation allegedly caused acute kidney failure among children who consumed it, resulting in multiple fatalities.

The investigation suggests:

• The raw materials used in the syrup were sourced without proper documentation.

• Purchases were made in cash to evade regulatory oversight.

• The company ignored mandatory quality-control protocols during manufacturing.

• Certain officials failed to conduct required inspections, raising concerns of regulatory lapses.

These findings led authorities to believe that earnings derived from the sale of the defective product constituted proceeds of crime, prompting the ED to initiate attachment under the Prevention of Money Laundering Act (PMLA).

What Asset Attachment Means

A provisional attachment freezes the accused person’s control over the properties.
While ownership does not immediately transfer, the attached assets cannot be sold, mortgaged, or transferred until the adjudicating authority decides the final outcome.

The attachment is typically followed by:

1. Review by the PMLA adjudicating authority

2. Confirmation or cancellation of attachment

3. Further prosecution, if evidence supports laundering charges

Wider Implications for the Pharmaceutical Sector

The case highlights significant concerns regarding:

• Quality compliance within smaller pharmaceutical units

• Regulatory oversight failures

• Public-health risks linked to non-compliant drug manufacturing

• Financial liability for companies involved in unsafe production

Regulators are expected to intensify monitoring of manufacturing practices, documentation, raw-material procurement, and supply-chain transparency across the sector.

What Happens Next

The ED will continue tracing financial flows, bank accounts, and additional properties potentially acquired through unlawful gains.
Parallel criminal investigations into negligence, falsification of records, and regulatory violations remain active.

Further attachments may follow if additional proceeds of crime are identified.

Shunyatax Global Perspective

The ED’s move to seize ₹2.04 crore in assets linked to Sresan Pharmaceutical sends a strong signal that public-health violations will attract financial scrutiny as much as criminal prosecution.
The combination of toxic manufacturing practices and suspected laundering of profits underscores the need for strict quality controls and accountability in India’s pharmaceutical ecosystem.

Shunyatax Global Services will continue monitoring this case and provide updates on enforcement actions, regulatory developments, and financial-crime trends.