India searches premises of cough syrup maker linked to child deaths, source says

Reuters:

NEW DELHI, Oct 13 – 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.