CHENNAI: The Directorate of Enforcement (ED), Chennai, on Thursday said it has provisionally attached properties worth Rs 55.30 crore belonging to Jaffer Sadiq and his associates on September 2 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
This includes 14 immovable properties, such as the JSM Residency Hotel and a luxurious bungalow, and seven high-end vehicles like Jaguar and Mercedes, acquired through criminal activities, ED said.
This follows ED’s investigation into Sadiq, a former DMK functionary, who was expelled from the party soon after he was arrested by the Narcotics Control Bureau for allegedly being the leader of a drug cartel smuggling pseudoephedrine and ketamine.
ED investigation revealed that Sadiq, in collusion with his brother Mohammed Saleem and others, was actively involved in exporting and concealing of pseudoephedrine and other narcotic substances. He has been director/ partner/ proprietor of various firms / entities / companies along with other persons and relatives, and the firms have been used to channelise and layer the proceeds of crime, the ED said.
ED claimed that this entire setup was used to route the Proceeds of Crime earned from illicit drug trafficking.
The agency arrested him on June 26 and his brother Mohammed Saleem on August 12 under PMLA. ED said that its investigation showed that Sadiq and his associates laundered the proceeds of crime from their drug operations by investing in various legitimate ventures, including real estate, film production, hospitality, and logistics.
The proceeds of crime were channelled into these investments through a network of bank accounts, including those controlled by Sadiq and his family members. The ill-gotten cash was deposited, layered through financiers, and recorded as unsecured loans in financial statements.
The laundered funds were used to acquire both immovable and movable assets in the names of Sadiq, his wife Ameena Banu, Mydeen Gani and others, including benamis like Mohammed Mustafa S and Jamal Mohammed.