The Enforcement Directorate (ED) has uncovered evidence indicating that alleged Tamil Nadu film producer Jaffer Sadiq engaged in money laundering activities amounting to over Rs 70 crore. Sadiq is accused of not only supplying contraband drugs within India but also to countries such as Australia and New Zealand.
The ED's Chennai unit conducted searches on April 9, 2024, under the Prevention of Money Laundering Act (PMLA) at various locations associated with Jaffer Sadiq and others across Chennai, Madurai, and Tiruchirappalli.
The investigation by the Enforcement Directorate stemmed from inquiries initiated by the Customs Department and the Narcotics Control Bureau (NCB), Delhi, into the cross-border illegal trade of narcotic substances by Jaffer Sadiq and his associates.
Sadiq, suspected to be the ringleader of an international drug-trafficking syndicate, allegedly smuggled pseudoephedrine disguised as a health-mix powder and desiccated coconut to Australia and New Zealand.
It is alleged that he funneled proceeds from drug sales into various ventures, including real estate, film production, and logistics, which served as fronts for illegal activities.
The search operations targeted residences and businesses associated with entities facilitating the laundering of cash generated by Jaffer Sadiq.
Evidence suggests that the cash was layered through specific financiers before being invested in various sectors, particularly film production and the hospitality industry, as well as in acquiring immovable properties.
According to ED officials, the investigation revealed direct cash payments exceeding Rs 6 crore, with over Rs 12 crore 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, totaling over Rs 40 crore.
The investigation is ongoing, with further analysis being conducted to uncover more insights into the complex network of illicit financial activities.
The search operations yielded 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, aged 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 reportedly linked to the drugs network by the NCB.
