Mumbai: The Enforcement Directorate (ED) officials have attached immovable properties worth Rs 8.53 crore in book value belonging to (late) Subhash Dudani and his family members, associates, and companies in connection with a money laundering investigation related to the manufacture and sale of methaqualone tablets, a prohibited psychotropic substance as per the NDPS Act.
In a statement released on Thursday, the ED said that Subhash Dudani and his friends had collaborated with the late Ronny Jonny Smith, an African drug lord, to run an international illegal narcotics operation.
Units for producing and smuggling drugs
Subhash Dudani had set up unit in Udaipur, Kandla, and Nagpur for the purpose of producing, smuggling, and shipping methaqualone pills into African nations while passing them off as exports. He came up with a different scheme for each time.
"Based on the evidence and material gathered during the PMLA investigation, it has been established that Subhash Dudani and others generated proceeds of crime through the sale of illegal drugs while simultaneously setting up CDRs, DVDs manufacturing units and other trading entities in Dubai, Hong Kong, Kenya, and London, either in his name or in the names of his employees, associates as front businesses for laundering such proceeds from the sale of drugs," the agency claimed in a statement.
The funds were transferred to Indian NRE, NRO accounts
The statement added, "The proceeds of crime earned out of the illegal sale of these drugs abroad, mainly in African countries, were introduced to various companies floated by him in the UAE and Hong Kong." Subsequently, these funds were transferred to his Indian NRE and NRO accounts and to the bank accounts of his associates and companies in India at Udaipur and Mumbai. "
"Cash was also brought in through various hawala channels to India. This money, apart from investing in various companies to further his narcotics business, was also used to purchase various properties in his name and in the names of his associates, family members, and companies. Multiple immovable properties in Mumbai and in Udaipur in various names have been identified as proceeds of crime during the course of the investigation," the statement added.
The investigation in this case was initiated by ED on the basis of the Prosecution Complaint filed by the Directorate of Revenue Intelligence (DRI), Jaipur against Subhash Dudani and his associates. Eighteen immovable properties worth Rs 8.53 crore (book value) have been attached by the ED, out of which six properties are located in Mumbai and twelve properties in Udaipur.