New Delhi: The Enforcement Directorate (ED) on Thursday, September 5, said it has attached assets worth more than Rs 55 crore of Chennai-based expelled DMK functionary Jaffer Sadiq and some of his associates as part of a narcotics trafficking-linked money-laundering investigation.
A provisional order under the Prevention of Money Laundering Act (PMLA) was issued by the federal agency on September 2 to attach 14 properties, including the JSM Residency Hotel, a luxurious bungalow, and seven high-end vehicles like Jaguar and Mercedes, the ED said in a statement.
The total value of these properties is Rs 55.3 crore, it said.
It claimed that these assets were acquired by the accused through “criminal” activities.
Sadiq, 36, was arrested by the agency in June, while his brother Mohammed Saleem was taken into custody in August.
The ruling DMK in Tamil Nadu expelled Sadiq, the Chennai West deputy organiser of the party’s NRI wing and a Tamil film producer, soon after his name and purported links to the drugs network were mentioned by the Narcotics Control Bureau (NCB) in February-March.
Distancing itself from Sadiq and his alleged illegal acts, a senior DMK leader had said the party had more than two crore members and it was not practically possible to check the antecedents of every single person who sought admission into it.
The ED said the latest action follows an investigation against Jaffer Sadiq Abdul Rehman, a former DMK functionary and an alleged leader of a drug cartel smuggling pseudoephedrine and ketamine.
The money-laundering case stems from a complaint filed by the NCB and Customs against Sadiq and his alleged associates.
The ED alleged that Sadiq, in collusion with his brother Saleem and others, was actively involved in “concealed exporting” of pseudoephedrine and other narcotic substances.
“He (Sadiq) has been the director, partner, and proprietor of various firms, entities, and companies along with other persons and relatives, which have been used to channelise and layer the proceeds of crime. This entire setup was used to route the proceeds of crime earned from illicit drug trafficking,” it alleged.
The ED alleged that Sadiq and his associates laundered the proceeds of crime from their drug operations by investing in various legitimate ventures like real estate, film production, hospitality, and logistics.
“The proceeds of crime were channelled into these investments through a network of bank accounts, including those controlled by Sadiq and his family members.
“The illicit cash was deposited, layered through financiers, and recorded as unsecured loans in financial statements,” it said.
The ED’s probe found that the laundered funds were used to acquire both immovable and movable assets in the names of Sadiq, his wife Ameena Banu, a person named Mydeen Gani, and some others, including “benamis” like Mohammed Mustafa S and Jamal Mohammed.
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