'Proceeds of drug smuggling invested in Tamil films, illegal business of former DMK leader spread to foreign countries', claims ED

The Enforcement Directorate issued an official statement four days after the raids in Chennai, Madurai and Tiruchirappalli. In the statement, the agency said that more than Rs 40 crore, allegedly earned from drug trafficking, was invested in sectors like film production, hotels and real estate by sacked DMK functionary Jafar Sadiq and his associated entities. It is noteworthy that Sadiq was arrested by NCB last month. He is accused of allegedly being involved in the smuggling of 3,500 kg of pseudoephedrine, which is worth around Rs 2,000 crore.

According to media reports, DMK had sacked Sadiq in February after he was accused of alleged links to drugs network and smuggling by NCB. ED had taken cognizance of the NCB case and other FIRs to register a money laundering case against Sadiq and others.

The ED has claimed that Sadiq, the mastermind of the smuggling syndicate, is allegedly accused of smuggling pseudoephedrine in the form of health mixture powder and desiccated coconut into Australia and New Zealand. Sadiq used the proceeds from drug sales to finance his and his associates' illegal activities in various ventures including real estate, film production and logistics.

ED had raided 25 premises in Chennai, Madurai and Tiruchirappalli on April 9. The agency had conducted the raid in collaboration with the central paramilitary force under Prevention of Money Laundering Act (PMLA) provisions. Former DMK leader Sadiq is also a Tamil film producer. During the raid, apart from Sadiq, the premises of Tamil film director Aamir and others were searched. NCB had said that Sadiq's links with Tamil and Hindi film financiers, some high-profile people and political funding were under their investigation. Sadiq was expelled from DMK in February itself after his name cropped up in drug smuggling.