Tamil Nadu: ED raids various locations in drug-related PMLA case involving ex-DMK member Jaffer Sadiq
Apr 13, 2024
Chennai (Tamil Nadu) [India], April 13 : The Chennai Zonal Office of the Directorate of Enforcement (ED) has conducted search operations at various locations in Tamil Nadu in a money laundering case in connection with an ongoing probe involving former Dravida Munnetra Kazhagam (DMK) member AR Jaffer Sadiq and others, the agency said on Saturday.
According to the agency release, the search operation was conducted on April 9 under the Prevention of Money Laundering Act (PMLA), 2002, at various locations in Chennai, Madurai, and Tiruchirappalli.
ED investigation, spurred by various investigations launched against Jaffer Sadiq and his accomplices by the Customs Department and Narcotics Control Bureau (NCB) in Delhi into the cross-border illegal trade of narcotic substances, the release stated.
Sadiq, purportedly the mastermind behind an international drug trafficking syndicate, stands accused of smuggling pseudoephedrine camouflaged as health-mix powder and desiccated coconut to Australia and New Zealand. It is alleged that he funnelled proceeds from drug sales into diversified ventures, including real estate, film production, and logistics, serving as fronts for illicit activities.
The search operations targeted residences and businesses linked to entities facilitating the laundering of cash generated by Jaffer Sadiq. Evidence suggests the cash was layered through specific financiers before being injected into various sectors, notably the movie production and hospitality industries and acquiring immovable properties, the ED said.
More than Rs 6 crore in direct cash payments and more than Rs 12 crore in cash were routed and layered for movie production. More than Rs 21 crore in cash deposits were observed in the bank accounts of entities controlled by Jaffer Sadiq. Significant cash has also been deployed for acquiring immovable properties. Approximately, more than Rs 40 crore in cash applications have been found. The investigation remains ongoing as further analysis is being conducted to unearth more insights into the intricate web of illicit financial activities, the ED said.
The search operations unveiled a network of incriminating documents and details of properties, both movable and immovable, purchased with funds sourced from drug trafficking, leading to the confiscation of substantial evidence.
Further investigation is underway, it said.
