Jaffer Sadiq's brother arrested by ED for money laundering, remanded to custody

CHENNAI: Brother of expelled DMK functionary Jaffer Sadiq, Mohammed Saleem, has been arrested by the ED in a money laundering case, the agency said on Tuesday. He was remanded to judicial custody by a local court here.

He was arrested on Monday evening, Enforcement Directorate (ED) officials said.

"Directorate of Enforcement (ED), Chennai Zonal Office has made a significant arrest in the ongoing investigation into high-profile drug smuggling and money laundering. Mohammed Saleem has been arrested under the provisions of Prevention of Money Laundering Act (PMLA), 2002 for his involvement in laundering proceeds linked to the Jaffer Sadiq case," the agency said in a release.

The ED had arrested Sadiq, nabbed earlier by the NCB for his alleged role in an international drug nexus, at the Tihar Jail in New Delhi in June, in connection with a drugs linked money laundering probe.

The agency further said the latest action follows an investigation by the NCB, which exposed Jaffer Sadiq Abdul Rehman, the former DMK functionary, as the 'mastermind' behind a sophisticated scheme to smuggle pseudoephedrine to Australia, New Zealand, and Malaysia, camouflaged as health-mix powder and desiccated coconut. The case also builds on previous seizures by Customs authorities.

"ED investigation revealed that Mohammed Saleem, in concert with Jaffer Sadiq, played a pivotal role in exporting and concealing pseudoephedrine and other narcotics. Saleem, who as director/partner in multiple firms and entities, used these channels to launder and layer the proceeds of crime. Findings reveal that Saleem has accumulated over Rs 8 Crore in illicit cash deposits across multiple accounts under his control," the ED release said.

He was engaged in money laundering tactics, including using financial intermediaries and fictitious unsecured loans to obscure the origins of this cash.

"Saleem not only facilitated the transfer of drug trafficking proceeds into valuable real estate but also invested in high-end assets such as a Jaguar and other luxury vehicles. His amassed wealth, in stark contrast to his declared income, underscores the scale of his involvement in this criminal network," the probe agency said.

Saleem was produced before a local court here on Tuesday.

Principal Sessions Judge S Alli remanded him to judicial custody till August 27.

The ED also sought 15 days custody of Saleem. The PSJ ordered notice to him on the agency's plea and posted for Wednesday, further hearing of the case.