Red sanders smuggling case: ED traces money trail to mastermind’s properties

The Enforcement Directorate ED has provisionally attached assets worth Rs 860 crore in connection with a red sanders smuggling case Abdul Jaffer who is allegedly the mastermind behind the Rs 63 crore smuggling operation is accused of purchasing these properties using the proceeds of crime The attached assets include immovable properties and luxury vehiclesJaffer currently lodged in judicial custody allegedly masterminded the smuggling of 159110 tonnes of red sanders worth Rs 6364 crore routed through 13 export consignments falsely declared as legitimate goodsOn May 22 2025 the ED conducted searches at Jafferrsquos residential and commercial premises in Chennai seizing documents property records and his mobile device He was arrested the same day under Section 19 of the Prevention of MoneyLaundering Act 2002The recently issued ED provisional attachment order attached immovable and movable assets including properties across Chennai Dindigul Kancheepuram Chengalpattu and Thiruvallur districts along with highend vehicles an official saidA prosecution complaint was filed before the Special PMLA Court in Nagpur on July 18 2025 under PMLA Sections 44 and 45 against Jaffer and his partnership firm AF Enterprises which was allegedly used to launder the proceeds of crimeThe case was initially registered by the Directorate of Revenue Intelligence DRI Nagpur based on specific intelligence that identified Jaffer as the kingpin of a syndicate smuggling red sanders to Dubai The DRI invoked provisions under the Customs Act 1962 as well as several IPC sections after intercepting containers stuffed with red sanders disguised as sponge ironOn October 2 2016 DRI officials intercepted a container at Inland Container Depot ICD Nagpur and seized 1324 logs of red sanders weighing 1405 tonnes There were two subsequent seizures mdash 11 tonnes from a warehouse in Raipur and 1706 tonnes from a container at Nhava Sheva port All three consignments were declared as sponge ironBetween February 2016 and October 2016 the syndicate had managed to smuggle 13 export consignments containing 15911 tonnes of red sanders valued at Rs 6364 crore routed via Nagpur and Raipur in ChhattisgarhAccording to statements recorded transporters labourers and close associates including Rajesh Subramaniam and Pannalal Meena detailed how genuine export cargo was swapped with red sanders and containers resealed to avoid detection Jafferrsquos central role in orchestrating and financing the smuggling operation was confirmed Based on this evidence the ED registered an enforcement case information report ECIR on March 17 2020 and began probing the money laundering trail under the PMLAInvestigators found that Jaffer had systematically acquired highvalue immovable assets using the crime proceeds These included residential flats in Chennai and lands in Kancheepuram and Chengalpattu along with commercial premises agricultural lands and luxury vehicles Properties were acquired in the names of his wife children parents and close associates to disguise ownershipStatements recorded revealed that Jaffer attempted to justify the source of funds as loans jewellery sales and contributions from relatives However his claims were found to be false and unsubstantiated Notably his wife denied receiving any significant financial support from her parents directly contradicting his version sources saidAccording to sources call detail records confirmed Jaffer remained in regular contact with key coconspirators including Subramaniam Meena and others involved in container loading and export logistics His connections with certain customs house agents and exporters also came to lightData extracted from his mobile phone included images of red sanders logs and handwritten slips detailing their weights further cementing his direct involvement His own prior admissions during customs proceedings and earlier statements under Section 108 were consistent with the EDrsquos findingsED officials said the investigation conclusively established that Jaffer was a habitual offender who played a key role in smuggling red sanders out of India laundering the profits through a wellplanned network of real estate front companies and family members Under PMLA the ED has the power to seize property obtained from proceeds of crimeRs 6364crValue of red sanders exported illegally