In a significant development, the Enforcement Directorate (ED) has revealed that Jaffer Sadiq, a former DMK member and film producer, was involved in routing proceeds from narcotics smuggling through multiple business ventures. The ED’s findings were detailed in a recent prosecution complaint submitted to the court, disclosing that Sadiq utilized film production, real estate, logistics, and hospitality to launder money obtained from illicit drug trafficking.Sadiq, who was initially arrested by the Narcotics Control Bureau (NCB) in February after authorities discovered a godown containing 50 kg of pseudoephedrine, was detained by the ED on June 26. His brother, Saleem, was also arrested on August 12. The ED noted that more than Rs 30 crore in cash deposits were identified across entities managed by Sadiq and his associates. This money, allegedly sourced from drug trade activities, was funneled into film production under the JSM Pictures banner with the assistance of financiers. The investigation further revealed that substantial cash payments were made to actors, directors, and support staff within the Tamil film industry.
The ED’s prosecution complaint, which was filed before the eighth Additional CBI Court on October 10 and taken into cognizance on October 18, named 19 suspects, including Sadiq as the primary accused. However, only Sadiq and his brother Saleem are currently in judicial custody.
In its press release, the ED stated, “The entire setup was orchestrated to channel the proceeds of crime earned through drug trafficking.” On September 2, the ED provisionally attached assets worth Rs 55.30 crore belonging to Sadiq and his network, including 14 immovable properties such as the JSM Residency Hotel and a luxurious bungalow, as well as seven high-end vehicles including brands like Mercedes and Jaguar.
This case underscores the extensive links between drug trafficking and money laundering operations within various industries, including entertainment and real estate. The ED continues to investigate the financial trail and potential involvement of other individuals connected to this laundering network.