Ex-DMK Leader Jaffer Sadiq Funneled Over Rs 40 Crore From Drug Trade Into Film Production, Real Estate: ED

DMK functionary Jaffer Sadiq, who has been arrested by the Narcotics Control Bureau (NCB) in connection with the smuggling of about 3,500 kg of pseudoephedrine with a street value of more than Rs 2,000 crore, has pumped over Rs 40 crore allegedly earned from drug the trafficking to film production, hospitality and real estate, the ED alleged on Saturday.

The ED has made these claims in an official statement following its raids in this case at Chennai, Madurai and Tiruchirapalli on April 9.

The NCB alleges that Sadiq used to receive Rs 1 lakh per kg as "cut" (commission) from smuggling narcotics. After his arrest, 36-year-old Sadiq was suspended from the party.

The money laundering case originated from complaints filed separately by the NCB and Customs department against Sadiq and his associates, accusing them of engaging in "cross-border illegal trade of narcotics substances."

Sadiq, believed to be the mastermind of an international drug trafficking network, faces allegations of smuggling pseudoephedrine disguised as health-mix powder and desiccated coconut to Australia and New Zealand, according to the ED.

The agency claims that he diverted proceeds from drug sales into various enterprises, including real estate, film production, and logistics, which purportedly served as fronts for illicit activities.

During a search operation conducted earlier this week, authorities targeted residences and businesses allegedly linked to entities involved in facilitating the laundering of cash generated by Sadiq, the agency asserted.

According to the evidence gathered, the cash was allegedly routed through specific financiers before being invested in sectors such as movie production, the hospitality industry, and the acquisition of 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 news agency quoted the ED as stating.

The Enforcement Directorate (ED) disclosed that a "significant" amount of cash was utilized for acquiring immovable properties, with the agency stating, "More than Rs 40 crore cash application have been found." The ED further stated that its investigation is ongoing, with additional analysis being conducted to uncover more insights into the "intricate web of illicit financial activities."

The Narcotics Control Bureau (NCB) has indicated that Sadiq's connections with Tamil and Hindi film financiers, along with certain "high-profile" individuals and instances of "political funding," are under scrutiny. Last month, Tamil Nadu Law Minister and DMK leader S Regupathy asserted that his party had no affiliations with Sadiq.

According to the NCB's assertions, Sadiq purportedly invested the money earned from his alleged drug trade into his "front or cover businesses" involved in movie production, real estate, and hospitality, among others.

Reportedly, a Tamil film titled 'Mangai' was "entirely funded" by the accused using proceeds from the drug trade. Additionally, he allegedly constructed a hotel in Chennai, as disclosed by a senior NCB officer during a press conference in Delhi last month.