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 issued by the federal agency following its raids in this case at Chennai, Madurai and Tiruchirapalli 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. He was expelled by the ruling DMK in Tamil Nadu in February after his name and purported links to the drugs network were mentioned by the NCB.

 

The money laundering case stems from separate NCB and Customs Department complaints filed against Sadiq and his partners on charges of indulging in “cross-border illegal trade of narcotics substances”. Sadiq, purportedly the mastermind behind an international drug trafficking syndicate, stands accused of smuggling pseudoephedrine camouflaged as health-mix powder and desiccated coconut to Australia and New Zealand, the ED said. It is alleged that he “funnelled” proceeds from drug sales into diversified ventures, including real estate, film production and logistics, serving as fronts for illicit activities, it said.

 

The search operation undertaken early this week targeted residences and businesses allegedly linked to entities “facilitating the laundering of cash generated by Sadiq”, the agency alleged. Evidence suggests, it said, the cash was layered through specific financiers before being injected into various sectors like movie 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. Over Rs 21 crore cash deposits were observed in the bank accounts of entities controlled by Jaffer Sadiq,” the ED claimed.