The Enforcement Directorate which conducted searches at multiple locations across Tamil Nadu early this week in the ongoing probe against alleged drugs smugglers AR Jaffer Sadiq and his associates has found evidence suggesting that cash was routed through specific financiers before it was invested in movie production, the hospitality industry etc.
After registering a case under the provisions of the Prevention of Money Laundering Act, investigators conducted searches at different locations in Chennai, Madurai, and Tiruchi on April 9.
The operation was necessitated following the investigations launched by the Narcotics Control Bureau and the Customs Department against Jaffar Sadiq and others on serious charges of international trade of narcotic substances.
Jaffar Sadiq, alleged to be the mastermind of the international drug trafficking syndicate, is facing allegations of smuggling pseudoephedrine camouflaged as health-mix powder and desiccated coconut to Australia and New Zealand.
Routed through financiers
ED searches revealed that proceeds of cash on the illegal drug business was routed through specific financiers before being invested into various sectors, notably movie production, hospitality industry and acquiring immovable properties.
While 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 said in a statement.
Investigation also revealed that a significant amount of cash was invested in real estate business. “Approximately, more than Rs. 40 crore cash application have been found,” the central agency said.
The search operations were targeted on the residential and business premises linked to entities facilitating the laundering of cash generated by the accused Jaffer Sadiq.
The investigation was continuing as further analysis was being conducted to unearth more insights into the intricate web of illicit financial activities.
The search operations which covered the house belonging to Jaffer Sadiq in Mylapore, office and residence of film director Ameer, premises or Buhari Hotel’s owner Buhari and others, unveiled a bunch of incriminating documents and exposed details of properties, both movable and immovable, purchased with funds sourced from drug trafficking, leading to the confiscation of substantial evidence, the ED said.
According to police sources, the international drug cartel was exposed following a tip-off given by intelligence agencies in Australia and New Zealand through Interpol to Indian authorities which led to a joint operated by the NCB and Delhi police. The drug syndicate is alleged to have sent about 45 consignments containing pseudoephedrine worth several hundreds of crores of rupees in the last three years to these two countries.
Tamil film producer Jaffer Sadiq, who was a member of the ruling Dravida Munnetra Kazhagam and later expelled from the party, was arrested by the NCB from Jaipur on March 9, this year. In the first week of April, actor-director Ameer and two others were summoned to Delhi and interrogated in connection with the case.
