Tamil Nadu: ED arrests Mohammed Saleem in money laundering case linked to drug trafficker Jaffer Sadiq

The Directorate of Enforcement (ED) Chennai Zonal Office has arrested Mohammed Saleem, a prominent functionary of the Viduthalai Chiruthaigal Katchi (VCK), on the evening of August 11 under the provisions of the Prevention of Money Laundering Act (PMLA) 2002. Saleem’s arrest is tied to his alleged involvement in laundering proceeds linked to international drug trafficker and former DMK NRI wing functionary, Jaffer Sadiq. Jaffer Sadiq, who was arrested by the Narcotics Control Bureau (NCB) in March this year for his role in an international drug trafficking ring, has been lodged in Tihar Jail, New Delhi, since June in connection with a drug-related money laundering probe. Sadiq, who is also a Tamil movie producer, was implicated in a Rs. 2,000 crore drug trafficking racket earlier this year. The NCB, on February 24, revealed that the cartel was busted on February 15 following a four-month-long joint investigation by the NCB and Delhi Police. Acting on a tip-off from police authorities in New Zealand and Australia, which reported pseudoephedrine shipments disguised as food products from India to their countries, the agencies apprehended three men from a warehouse in West Delhi’s Basai Darapur. The cartel had been using air and ship cargo to transport their products. In a statement dated August 13, the ED highlighted that the NCB had exposed Jaffer Sadiq Abdul Rahman as the mastermind behind a sophisticated scheme to smuggle pseudoephedrine to Australia, New Zealand, and Malaysia, under the guise of health-mix and desiccated coconut. The case also builds on previous seizures, including pseudoephedrine by Chennai Customs in 2015 and Ketamine by Mumbai Customs in 2018. An Enforcement Case Information Report (ECIR) was subsequently filed, leading to a comprehensive search under Section 17 of the PMLA at 15 locations across Tamil Nadu. The ED’s investigation revealed that Mohammed Saleem, connected to Jaffer Sadiq and a VCK functionary, played a pivotal role in exporting and concealing pseudoephedrine and other narcotics. Saleem, who is a director/partner in multiple firms and entities, allegedly used these channels to launder and layer the proceeds of the crime. The ED’s investigation revealed that Saleem had accumulated over Rs 8 crore in illicit deposits across multiple accounts under his control. The findings indicated that Saleem employed various money laundering tactics, including using financial intermediaries and fictitious unsecured loans to conceal the origins of the illicit funds. The ED stated that Saleem facilitated the transfer of drug trafficking proceeds into valuable real estate and invested in high-end assets, including a Jaguar and other luxury vehicles. The wealth he amassed, in stark contrast to his declared income, underscores the scale of his involvement in the criminal network. After his arrest, Saleem was produced before Principal Sessions Judge S Alli, who remanded him to judicial custody until August 27. The ED has sought a 15-day custody of Saleem for further questioning, with the court set to hear the agency’s plea today. The arrest of Saleem follows the earlier apprehension of his brother, Jaffer Sadiq, a former DMK functionary, by the Narcotics Control Bureau (NCB) for his role in an international drug trafficking ring. The NCB had identified Sadiq as a key figure in smuggling pseudoephedrine to countries like Australia, New Zealand, and Malaysia. The DMK Government in Tamil Nadu had no idea till the NCB identified the Drug Kingpin and DMK functionary Jaffar Sadiq, for smuggling Pseudoephedrine, who was operating right under their noses and a frequent visitor to their party headquarters. Today, his brother & VCK... pic.twitter.com/viJFMR8NOI — K.Annamalai (@annamalai_k) August 13, 2024 Reacting to these developments, Tamil Nadu BJP Chief K Annamalai criticised the DMK government for its apparent lack of awareness about the drug smuggling activities occurring under its nose. In a post on X, K Annamalai highlighted the recent arrests of both Saleem and another DMK functionary, Ibrahim, for their involvement in drug trafficking. Annamalai urged Tamil Nadu Chief Minister MK Stalin to recognize the disgrace these incidents bring to the state, rather than treating them as mere badges of honour.