Drug cartel | Enforcement Directorate finds significant cash pumped into real estate and movie production

Enforcement Directorate uncovers cash laundering through financiers in movie production and hospitality industry in Chennai drug smuggling probe.

The Enforcement Directorate which conducted searches at multiple locations across Tamil Nadu early this week in the ongoing probe against alleged drugs smugglers AR Jaffer Sadiq and his associates has 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, 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 Jaffar Sadiq and others on serious charges of international trade of narcotic substances. 

Jaffar Sadiq, alleged to be the mastermind of the international drug trafficking syndicate, is facing allegations of smuggling pseudoephedrine camouflaged as health-mix powder and desiccated coconut to Australia and New Zealand.

ED 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,  hospitality industry and acquiring immovable properties. 

While 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 ED said in a statement. 

Investigation also revealed that a significant amount of cash was invested in real estate business. “Approximately, more than Rs. 40 crore cash application have been found,” the central agency said.