CHENNAI: The Enforcement Directorate has said that Jaffer Sadiq, a disgraced former DMK man and movie producer, who was arrested by the Narcotics Control Bureau for smuggling pseudoephedrine abroad, was routing the proceeds of the crime through his various other businesses like film production, real estate, logistics and hospitality.
This was disclosed in ED’s prosecution complaint submitted before the court recently. The entire set up was used to route the proceeds of crime earned from illicit drug trafficking.
The ED had arrested Sadiq on June 26 and his brother Salem on August 12 this year, said a ED press note. The prosecution complaint, filed before eighth Additional CBI Court October 10 and taken into cognisance on Oct 18, had arraigned 19 persons as suspects apart from Sadiq, the mastermind. However, only Sadiq and Saleem are currently under judicial custody.
“More than Rs 30 crore cash deposits were discovered across various entities controlled by Sadiq and his associates. The money, allegedly generated from narcotics trade, was routed into film production under the JSM Pictures banner using financiers. Substantial cash payments were also made to actors, directors, and support staff in the Tamil movie industry,” the ED noted.
While Sadiq was arrested by the NCB, New Delhi, in February after a godown with 50 kg pseudoephedrine was busted. The ED joined the probe to investigate the money-laundering angle.
On September 2, the ED provisionally attached assets worth Rs 55.30 crore belonging to Sadiq and associates. This includes 14 immovable properties, such as the JSM Residency Hotel and a luxurious bungalow, and 7 high-end vehicles including Mercedes and Jaguar.