Ranganathan Govindan, who runs the Tamil Nadu-based Sresan Pharmaceuticals, was taken into custody by Madhya Padhya Pradesh state police in Chennai on Wednesday night.
Madhya Pradesh's police had been looking for Ranganathan since at least 17 children under the age of 5 died over the last month after allegedly consuming Coldrif cough syrup made by his company.
India's Health Ministry has said test samples of Coldrif contained diethylene glycol (DEG) — a highly toxic industrial solvent.
The cough syrup was banned after a test confirmed the presence of the chemical on October 2.
A report by the Tamil Nadu Drugs Control Department shows that cough syrup was manufactured in unhygienic factory conditions.
An initial investigation has revealed that aside from Madhya Pradesh, the cough syrup was also supplied to Odisha and Puducherry, according to Indian media reports.
On Wednesday, Tamil Nadu Health Minister Ma Subramanian said his state's government will initiate criminal action against Sresan Pharmaceuticals.
Indian health authorities have also asked people to avoid Respifresh and RELIFE syrups made by companies based in Gujarat state.
The products have also been found to contain the same toxic chemical.
