CHENNAI, April 9: The Enforcement Directorate (ED) on Tuesday carried out multi-city raids in Tamil Nadu as part of a drugs trafficking-linked money laundering investigation against sacked DMK functionary Jaffer Sadiq and others, the officials said.
As many as 25 premises in state capital Chennai, Madurai and Tiruchirapalli are being searched by the ED officials, accompanied by an escort of central paramilitary forces.
Some documents and electronic gadgets have been seized during the operation, they said.
The action is being undertaken as part of a case registered under the provisions of the Prevention of Money Laundering Act (PMLA), the officials said.
The premises of Sadiq, who is also a producer of Tamil films, film director Ameer and some others are being covered, they said.
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.
The ED took cognisance of this NCB case and some other FIRs to file the money laundering case against Sadiq and others.
The NCB has said Sadiq’s links with Tamil and Hindi film financiers, some “high-profile” people and some instances of “political funding” were under its scanner.
Sadiq was expelled by the ruling DMK in February after his name and purported links to the drugs network were mentioned by the NCB.
Tamil Nadu Law Minister and DMK leader S Regupathy had asserted last month that his party had no links with Sadiq.
Talking about the the issue of Sadiq being given membership in the party despite his alleged links to a separate and old narcotics case, Regupathy told reporters that his party has over two crore members and it is not practically possible to check the antecedents of every single person who sought admission into it.
Sadiq was called by the NCB as the alleged “mastermind and kingpin” of a trans-national pseudoephedrine smuggling racket spread across Australia, New Zealand and Malaysia from India.
The case came to light after the NCB along with the special cell of the Delhi Police raided a godown located in Delhi on February 15 and arrested three persons.
This action came on a tip-off the NCB received towards the end of 2023 from the Australian and New Zealand authorities about “large quantities” of pseudoephedrine concealed in desiccated coconut powder and mix food powder being smuggled into their countries from India.
The NCB claimed the three arrested persons and Sadiq informed them that a total of 45 pseudoephedrine consignments were sent by them over the last three years, containing about 3,500 kg of pseudoephedrine valued at over Rs 2,000 crore in the international market.
Sadiq, according to the NCB’s claim, pumped and invested his alleged drugs trade earned money into his “front or cover businesses” of movie production, real estate and hospitality among others.
A Tamil film named ‘Mangai’ was “entirely funded” by the accused from the drugs money. He also constructed a hotel in Chennai, a senior NCB officer had told reporters during a press conference in Delhi last month.
According to the NCB, Sadiq allegedly used to get Rs 1 lakh per kg “cut” (commission) from the smuggling of narcotics.
The anti-narcotics agency has questioned some more people linked to the case since it arrested Sadiq.
Pseudoephedrine is a highly addictive synthetic drug, and even though it has some legal uses, it is classified as a controlled substance in India, bringing strict regulation on its production, possession, trade, export and use.
It is used to prepare a synthetic drug called methamphetamine.
Illegal possession and trade of pseudoephedrine is punishable up to 10 years of imprisonment under the NDPS Act. (PTI)
