Tamil Nadu BJP President K Annamalai has demanded an explanation from DMK Minister Anbil Mahesh regarding allegations uncovered by the Enforcement Directorate (ED) linking the Tamil Nadu Textbook Corporation to money laundering operations by Coalescence Ventures, a firm owned by former DMK NRI Wing President and international drug trafficker Jaffer Sadiq.
The ED probe has revealed that proceeds from Sadiq’s narcotics trafficking were funnelled through the corporation via fraudulent business deals, raising serious questions about the involvement of state entities in financial crimes.
The BJP state chief called on Mahesh to address the allegations linking former DMK NRI Wing President and international drug trafficker Jaffer Sadiq’s company, Coalescence Ventures, to money laundering activities involving the Tamil Nadu Textbook Corporation, as revealed by the Enforcement Directorate.
In a post on his official X account, K. Annamalai stated, “The Enforcement Directorate’s investigation has exposed that international drug trafficking kingpin and DMK leader Jaffer Sadiq used the Tamil Nadu Textbook Corporation to launder money from drug sales. It has come to light that Sadiq’s company, Coalescence Ventures, entered into an agreement with Sri Appu Direct, a contractor for the Tamil Nadu Textbook Corporation, and supplied goods. The investigation also revealed that Sadiq invested proceeds from drug sales into Coalescence Ventures between 2022 and 2023. Notably, Sri Appu Direct had a contract with the Tamil Nadu Textbook Corporation during the same period, with goods supplied by Sadiq’s company. This indicates that the Tamil Nadu Textbook Corporation indirectly facilitated the laundering of money linked to drug trafficking. I call on the Minister of School Education, Mr. Anbil Mahesh Poyyamozhi, to explain this.”
சர்வதேச போதைப்பொருள் கடத்தல் கும்பல் தலைவனும், திமுக நிர்வாகியுமான ஜாஃபர் சாதிக், போதைப் பொருள் விற்பனை மூலம் கிடைத்த பணத்தை வெள்ளையாக்குவதற்கு, தமிழ்நாட்டுப் பாடநூல் கழகத்தைப் பயன்படுத்தியுள்ளது அமலாக்கத்துறை விசாரணையில் தெரியவந்துள்ளது. ஜாஃபர் சாதிக்கின் நிறுவனமான Coalescence… pic.twitter.com/v0YQNkqooV
— K.Annamalai (@annamalai_k) December 16, 2024
The ED investigation has revealed that one of Jaffer Sadiq’s 21 businesses, which allegedly funnelled proceeds from international drug trafficking, supplied geometry boxes and school bags to a contractor of the Tamil Nadu Textbook Corporation.
Jaffer Sadiq, a former DMK functionary expelled for his involvement in trafficking controlled substances like pseudoephedrine and ketamine to Australia, New Zealand, and Malaysia, is facing trial for his role in these operations and the significant wealth he amassed through them. Recently, the ED filed a chargesheet against Sadiq and 11 other individuals, including his brother Saleem and several associates, before a special court in Chennai.
According to sources, Coalescence Ventures, a partnership firm founded by Sadiq and his business partner S. Ramesh in December 2020, procured goods from a Noida-based company, Matrix, and sold them to Sri Appu Direct, a contractor for the Tamil Nadu Text Book Corporation located in Cuddalore. While Sri Appu Direct has not been charged as an accused, further investigations by the ED uncovered evidence of the company’s officials allegedly bribing high-ranking officials in the Tamil Nadu and Puducherry governments. Attempts to contact the firm for comment were unsuccessful.
Reports indicate that Sadiq invested Rs. 40 lakh in cash and contributed between Rs. 1-1.5 crore to Ramesh for Coalescence Ventures between December 2022 and January 2023, with the funds believed to have originated from his narcotics trafficking activities. The profit-sharing agreement was reportedly set at 51:49 in favor of Sadiq.
The sale of goods to Sri Appu Direct was routed through Green Cosmic Infra, a shell company owned by Ramesh. This circular transaction—goods moving from Matrix to Coalescence, then to Green Cosmic Infra, and finally to Sri Appu Direct—has been identified as a method to launder the illicit proceeds of crime, according to ED investigators.
Further analysis revealed that while Ramesh managed Coalescence’s day-to-day operations, the firm’s bank account was opened and controlled by Sadiq’s brother Saleem, who also received all one-time passwords (OTPs) and other transaction details on his phone.
Additionally, Ramesh has been linked by both the ED and the Narcotics Control Bureau (NCB) to attempts to recruit individuals to manage Sadiq’s operations in Australia. ED’s investigation revealed that a portion of Ramesh’s investment, approximately Rs. 15 lakh, was transferred to his account by Suresh Mohan, one of the individuals Sadiq attempted to send to New Zealand to oversee his drug trafficking activities there.
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