The Enforcement Directorate (ED) has gathered evidence of money laundering of over Rs 70 crore by alleged Tamil Nadu film producer Jaffer Sadiq. \
The accused was allegedly supplying contraband drugs not only within India, but also to countries like Australia and New Zealand. The ED’s Chennai unit had carried out searches on April 9, 2024, under the Prevention of Money Laundering Act (PMLA) at various locations linked to Jaffer Sadiq and others across Chennai, Madurai, and Tiruchirappalli.
The Enforcement Directorate’s investigation was grounded on inquiries initiated by the Customs Department and Narcotics Control Bureau (NCB), Delhi, into cross-border illegal trade of narcotic substances by Jaffer Sadiq and his accomplices.
Sadiq, believed to be the mastermind behind an international drug-trafficking cartel, is accused of smuggling pseudoephedrine, under the garb of a health-mix powder and desiccated coconut to Australia and New Zealand.
Allegations suggest that he funnelled proceeds from drug sales into diversified ventures, including real estate, film production, and logistics, which served as fronts for illicit activities.
The search operations targeted residences and businesses associated with entities facilitating the laundering of cash generated by Jaffer Sadiq.
The gathered evidence hint that the cash was layered through specific financiers before being injected into various sectors, notably films production and hospitality industry, as well as acquiring immovable properties.
“The investigation revealed direct cash payments exceeding Rs 6 crore, with over Rs 12 Ccore cash routed and layered for film production. Additionally, more than Rs 21 Crore cash deposits were observed in bank accounts controlled by entities linked to Jaffer Sadiq. Significant cash has also been deployed for acquiring immovable properties, totalling over Rs 40 crore,” ED officials said.
The investigation is ongoing as further analysis is being conducted to uncover more insights into the intricate web of illicit financial activities.
The search operations unearthed 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.
Sadiq, 36, was arrested by the NCB in March in connection with smuggling about 3,500 kg of contraband drugs, valued at over Rs 2,000 Crore.
He was ousted by the ruling DMK in Tamil Nadu after his name was purportedly linked to the drugs network by the NCB.