CHENNAI : More than Rs 40 crore allegedly earned through drug trafficking was “injected” by Jaffer Sadiq and entities suspected to be linked to him into film production, hospitality, and real estate, the Enforcement Directorate (ED) said on Saturday.
The ED made these claims in an official statement issued by it following the raids carried out by the agency in Chennai, Madurai and Tiruchy on April 9 in places linked to Jaffer Sadiq who was recently sacked from the ruling DMK.
Sadiq, 36, was arrested by the Narcotics Control Bureau (NCB) last month for involvement in the smuggling of about 3,500kg of pseudoephedrine with a street value of more than Rs 2,000 crore.
The money laundering case stems from separate NCB and Customs Department complaints filed against Sadiq. The search operation carried out by the ED targeted residences and businesses allegedly linked to entities facilitating the laundering of cash generated by Sadiq. Sources said the cash was layered through specific financiers before being injected into various sectors like movie production, hospitality industry, and acquiring of immovable properties.
Over Rs 12 crore cash routed for film production, says ED
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, the ED said. It is alleged that he “funnelled” proceeds from drug sales into diversified ventures that served as fronts for illicit activities, it said. “More than Rs 6 crore direct cash payments and more than Rs 12 crore cash was routed and layered for movie production. More than Rs 21 crore cash deposits were observed in the bank accounts of entities controlled by Jaffer Sadiq,” the ED claimed.
It added that a “significant” amount of cash was deployed for acquiring immovable properties as well.
“More than Rs 40 crore cash application have been found,” the ED said.