India’s financial crime agency is searching seven locations over suspected money-laundering by Sresan Pharma, the company behind Coldrif cough syrup, which has been linked to the deaths of at least 19 children in Madhya Pradesh last month.

Tests revealed the syrup contained diethylene glycol (DEG) at levels nearly 500 times above the safe limit, prompting a ban. The raids, conducted in Chennai, Tamil Nadu, also included the homes of senior officials from the state drug control office.

Company owner G. Ranganathan, who was arrested last week, did not respond to requests for comment.

India, often called the “pharmacy of the world,” supplies 40% of generic medicines in the U.S. and over 90% in many African countries. By law, Indian drugmakers must test all batches of raw materials and final products. Since 2023, exported cough syrups undergo additional government-mandated testing following child deaths in Cameroon, Gambia, and Uzbekistan.

However, Coldrif was sold only domestically, highlighting a regulatory gap in local medicine oversight, according to the World Health Organization.

Authorities have also warned against Respifresh and ReLife syrups, produced by Shape Pharma and Rednex Pharmaceuticals in Gujarat, which were found to contain the same toxic chemical. Company officials did not respond to media inquiries.