ED Traces Money Trail to Mastermind’s Properties in Red Sanders Smuggling Case
The Enforcement Directorate (ED) has provisionally attached assets worth Rs 8.60 crore of Abdul Jaffer, the alleged mastermind behind a Rs 63 crore red sanders smuggling operation. The attached assets include immovable properties and luxury vehicles.
Red SandersSmugglingEdAbdul JafferMoney LaunderingReal Estate MumbaiSep 27, 2025
Jaffer, currently lodged in judicial custody, allegedly masterminded the smuggling of 159.110 tonnes of red sanders worth Rs 63.64 crore, routed through 13 export consignments falsely declared as legitimate goods.
On May 22, 2025, the ED conducted searches at Jaffer’s 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 Money-Laundering Act, 2002.
The recently issued ED provisional attachment order attached immovable and movable assets, including properties across Chennai, Dindigul, Kancheepuram, Chengalpattu, and Thiruvallur districts, along with high-end vehicles, an official said.
A 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 crime.
The 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 iron.
On October 2, 2016, DRI officials intercepted a container at Inland Container Depot (ICD) Nagpur and seized 1324 logs of red sanders weighing 14.05 tonnes. There were two subsequent seizures — 11 tonnes from a warehouse in Raipur, and 17.06 tonnes from a container at Nhava Sheva port. All three consignments were declared as sponge iron.
Between February 2016 and October 2016, the syndicate had managed to smuggle 13 export consignments containing 159.11 tonnes of red sanders, valued at Rs 63.64 crore, routed via Nagpur and Raipur in Chhattisgarh.
According 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. Jaffer’s 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 PMLA.
Investigators found that Jaffer had systematically acquired high-value 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 ownership.
Statements 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 said.
According to sources, call detail records confirmed Jaffer remained in regular contact with key co-conspirators, including Subramaniam, Meena, and others involved in container loading and export logistics. His connections with certain customs house agents and exporters also came to light.
Data 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 ED’s findings.
ED 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 well-planned network of real estate, front companies, and family members. Under PMLA, the ED has the power to seize property obtained from proceeds of crime.
Frequently Asked Questions
What is the value of the red sanders smuggling operation?
The red sanders smuggling operation is valued at Rs 63.64 crore.
Who is the alleged mastermind behind the red sanders smuggling?
Abdul Jaffer is alleged to be the mastermind behind the red sanders smuggling operation.
What assets were attached by the ED in the red sanders case?
The ED provisionally attached assets worth Rs 8.60 crore, including immovable properties and luxury vehicles.
Where were the red sanders smuggled to?
The red sanders were smuggled to Dubai.
What was the role of the Directorate of Revenue Intelligence (DRI) in this case?
The DRI initially registered the case based on specific intelligence and intercepted containers stuffed with red sanders disguised as sponge iron.
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