ED: Sadiq funnelled Rs 40 cr drug money into films, realty
NEW DELHI: More than Rs 40 crore allegedly earned from drug trafficking was “injected” by now-sacked DMK functionary Jaffer Sadiq and his linked entities into sectors like film production, hospitality and real estate, the ED alleged on Saturday.
The Enforcement Directorate (ED) made these claims in an official statement following its raids in this case at Chennai, Madurai and Tiruchy on April 9.
Sadiq (36) was arrested by the Narcotics Control Bureau (NCB) last month for his alleged involvement in the smuggling of about 3,500 kg of pseudoephedrine with a street value of more than Rs 2,000 crore to Australia and New Zealand. He was expelled by the DMK in February after his name and purported links to the drugs network were mentioned by the NCB.
He “funnelled” proceeds from drug sales into diversified ventures, including real estate, film production and logistics, serving as fronts for illicit activities, the ED said. The search operation undertaken early this week targeted residences and businesses allegedly linked to entities “facilitating the laundering of cash generated by Sadiq”.
Evidence suggests the cash was layered through specific financiers before being injected into various sectors like film production, the hospitality industry and acquiring immovable properties.
“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.
The agency said its investigation is continuing as further analysis is being conducted to unearth more insights into the “intricate web of illicit financial activities”.
The NCB said Sadiq’s links with Tamil and Hindi film financers, some “high-profile” people and some instances of “political funding” were under its scanner.