Drug cartel money was pumped into real estate, movies via financiers: ED
The agency’s searches revealed that proceeds of cash from the illegal drug business was routed into various entities controlled by Tamil film producer Jaffer Sadiq, the alleged mastermind
he Enforcement Directorate, which conducted searches at multiple locations across Tamil Nadu earlier this week in the ongoing probe against alleged drugs smugglers A.R. Jaffer Sadiq and his associates, has reportedly 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 (PMLA), 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 Tamil film producer Jaffar Sadiq and others, on serious charges of international trade of narcotic substances.
Jaffer Sadiq, alleged to be the mastermind of the international drug trafficking syndicate, is facing charges of smuggling pseudoephedrine camouflaged as healthmix powder and desiccated coconut to Aus
Ttralia and New Zealand.
Financiers involved
The agency’s 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, the hospitality industry and acquiring immovable properties.
While ₹6 crore direct cash payments and more than ₹12 crore cash was routed and layered for movie production, over ₹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 ₹40 crore cash application have been found,” the central agency said.
The search operations, which covered the house belonging to Jaffer Sadiq in Mylapore, the office and residence of film director
Ameer, premises of 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.
Interpol tipoff
According to police sources, the international drug cartel was exposed following a tipoff given by intelligence agencies in Australia and New Zealand through Interpol to Indian authorities which led to a joint operation by the Narcotics Control Bureau and the 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.
Jaffer Sadiq, who was a member of the ruling Dravida Munnetra Kazhagam (DMK) before his explusion from the party in February, was arrested by the NCB from Jaipur on March 9, this year.
In the first week of April, actordirector Ameer and two others were summoned to Delhi and interrogated in connection with the case.