The Enforcement Directorate (ED) has revealed that Jaffer Sadiq, a former DMK functionary under investigation for running international drug trafficking ring, used black money from the illegal trade to launder funds through investments in 21 businesses across Tamil Nadu. According to report by The New Indian Express, these businesses spanned various sectors, including iron and steel scrap, seafood, imported dates and perfume, indoor sports facilities, restaurants, and Tamil film production.
Sadiq, who is being probed for his role in trafficking controlled substances like pseudoephedrine and ketamine between 2014 and 2024 to countries such as Australia, New Zealand, and Malaysia, ran a complex money laundering operation. The illicit funds were funneled into the bank accounts of Sadiq, his associates, and their companies, disguised as unsecured loans.
Agents facilitated this by depositing unaccounted cash from the drug trade into these accounts, earning commissions of 1% to 3% for their role in the process. These transactions, described as “accommodation entries,” have been detailed in the ED’s chargesheet submitted to a CBI court in Chennai.
The illicit funds were also funneled into at least 14 properties valued at ₹52.5 crore and nine luxury cars worth ₹4.38 crore, all registered in the names of Sadiq, his family, and close associates. The purchase of these assets was similarly structured through accommodation entries, with payments made using Demand Drafts (DDs). Furthermore, the construction of the properties was paid for entirely in cash. The ED also found substantial unexplained cash deposits amounting to ₹33.9 crore in the accounts of Sadiq, his family, associates, and associated companies.
(Image Credit: TNIE)
Although many of these businesses reported losses and generated no profits, both Sadiq and his brother Saleem, who co-owned several ventures, paid themselves substantial salaries. The Income Tax Returns (ITRs) of these companies were found to be falsified, containing inconsistencies and inaccuracies. For example, JSM Residency, a hotel built by Sadiq in Purasawalkam in 2015, failed to account for electricity expenses despite offering air-conditioned rooms. Similarly, a biryani shop run by Saleem in 2020 showed a revenue of ₹1.5 crore, but lacked proper invoices for the purchase of spices and condiments, with only doctored bills for chicken and mutton purchases.
Sadiq’s fish trading ventures claimed an impressive 32% profit, despite daily records showing a more realistic margin of around 8%. The ED also noted suspicious inter-business transactions, which suggested money laundering. For example, Vistara Iron and Steel, a scrap dealership owned by Sadiq, transferred funds to a chit fund for an investment on his behalf, with the earnings from this fund subsequently routed into his personal accounts.
Analysis of the ITRs for Sadiq and his family revealed significant financial anomalies. His capital account showed an increase from ₹7.15 lakh in FY13 to ₹2.3 crore in FY14, with the figure rising progressively to ₹13.86 crore by FY18, according to the ED’s investigation.
How Jaffer Sadiq laundered his drug money through 21 business in Tamil Nadu:
ED's investigation has found that Sadiq had firms in scrap trade, seafood, indoor sports, Tamil film industry and restaurants.
To convert black money into white, he used a network of agents who would… pic.twitter.com/zBcMfxc70s
— Siddharth Prabhakar (@Sidprabhakar7) November 16, 2024
Political critics argue that without the intervention of the central government, the DMK would not have taken any action or uncovered the massive drug ring in question. They point to several instances that highlight the party’s questionable involvement. For example, the JSM Residency in Chennai, which was a two-star hotel, was inaugurated by DMK’s HRCE Minister PK Sekar Babu. Additionally, the promotion of Saleem Bhai’s biryani was done in collaboration with Dravidianist director Ameer Sulthan. Furthermore, JSM Productions, which produced the film ‘Mangai‘, saw Kiruthiga Udhayanidhi (DMK scion Udhayanidhi Stalin’s wife) as the chief guest for the launch of the film’s single.
போதை கடத்தல் மன்னன் ஜாபர் சாதிக் துவங்கிய நிறுவனங்களில் ஒன்றுதான் இந்த pitch n play மைதானம்…
தேசிய போதை தடுப்பு பிரிவு சோதனை செய்து கண்டுபிடிக்கும் வரை துரும்பை கூட கிள்ளி போடவில்லையே தமிழக காவல்துறை @mkstalin ? pic.twitter.com/mGD9WlaRUK
— CTR.Nirmalkumar (@CTR_Nirmalkumar) November 16, 2024
One of the businesses of Jaffer Sadiq is Pitch n Play which was inaugurated by DMK MP Dayanidhi Maran.
In the video shared by ADMK functionary CTR Nirmalkumar, YouTuber Mohamed Irfan can be seen playing in the Pitch N Play (as part of promotion?). It is noteworthy that Irfan, known for frequently flouting laws, shares a close relationship with the DMK scion. He did a public relations video with DMK scion and Minister Udhayanidhi Stalin in November 2022. Recently Irfan found himself in soup after he posted a video on his YouTube channel, “Irfan’s View”, filmed at a private hospital in Chennai. The video depicted Irfan cutting his newborn’s umbilical cord on camera as he and his wife, Aaliya, celebrated the birth of their first child. The Health Department took immediate action against the hospital while Irfan remains untouched.