CHENNAI: The Directorate of Enforcement, Chennai has provisionally attached assets worth Rs 55.30 crore belonging to Jaffer Sadiq and associates under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. This includes 14 immovable properties, including the JSM Residency Hotel, a luxurious bungalow, and seven high-end vehicles like Jaguar and Mercedes, all acquired through criminal activities, a release from the ED said on Thursday.
The action follows an investigation into Jaffer Sadiq, a former DMK functionary and alleged mastermind of a drug cartel smuggling pseudoephedrine and ketamine. The ED probe, based on NCB and Customs investigations, led to searches at 15 locations in Tamil Nadu.
ED investigation revealed that Jaffer Sadiq, in collusion with his brother Mohammed Saleem, was actively involved in exporting and concealing pseudoephedrine and other narcotic substances. He has been director/ partner/prop of various firms/ entities/ companies along with other persons and relatives, which has been used to channelise and layer the proceeds of crime. This entire setup was used to route the Proceeds of Crime (POC) earned from the illicit drug trafficking. Hence, the ED on June 26 arrested Jaffer Sadiq and on August 12 arrested Mohammed Saleem under PMLA, 2002 for money laundering, the release said.
The ED investigation revealed that Jaffer Sadiq and his associates laundered the POC from their drug operations by investing in various legitimate ventures, including real estate, film production, hospitality, and logistics, the release further said.