Red Sanders Smuggling: ED Attaches ₹8.6 Crore Assets Linked To International Syndicate Kingpin Abdul Jaffer

Mumbai: The Enforcement Directorate (ED) has seized assets worth Rs 8.6 crore, identified as Proceeds of Crime (PoC) generated from the illicit smuggling of Red Sanders, linked to Abdul Jaffer, the kingpin of the international Red Sanders smuggling syndicate, and associates. The agency filed a prosecution complaint before the Nagpur PMLA Special Court, while Jaffer, arrested in May, remains in judicial custody.

Officials said the attachment order covers a wide array of immovable and movable assets across Tamil Nadu, including luxury residential flats in Chennai, sprawling land holdings in Kancheepuram and Chengalpattu, high-end vehicles, commercial properties, and agricultural lands across several districts. Investigators allege these assets were acquired through laundered funds and deliberately registered in the names of Jaffer’s wife, children, and close associates to mask illicit wealth as family assets.

The ED's probe alleges that Jaffer channeled the profits from red sanders smuggling into real estate, commercial premises, agricultural land, and luxury cars, creating a facade of legitimate prosperity. The funds were reportedly moved through his firm, M/s A.F. Enterprises, which the ED has now described as a conduit for the tainted money.

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 PMLA.

Jaffer, described by investigators as a “habitual offender,” has been linked for nearly a decade to one of the largest red sanders smuggling networks. He first came under scrutiny in 2016 when the Directorate of Revenue Intelligence (DRI) intercepted containers in Nagpur. On October 2, 2016, authorities seized 1,324 logs of red sanders, weighing 14.05 metric tonnes. Two subsequent seizures followed: 11 metric tonnes from a warehouse in Raipur and 17.06 metric tonnes from a container at Nhava Sheva port, all intended for illegal export under the guise of sponge iron.

By the time the containers were seized, the investigation further revealed that between February and October 2016, the Jaffer-led syndicate had already smuggled 159.11 metric tonnes of Red Sanders, valued at Rs 63.64 crore, through 13 export consignments routed via Raipur and Nagpur.

The DRI probe, triggered by specific intelligence, revealed that the syndicate was involved in the illicit export of red sanders. Key seizures made between 2016 and 2020 underscored the syndicate’s systematic modus operandi, which included misdeclaration and concealment of the precious wood within legitimate export consignments.

Statements from transporters, custom clearing agents, labourers, and close associates, including Rajesh Subramaniam and Pannalal Meena, detailed how legitimate export cargo was swapped with red sanders and containers resealed to evade detection. Agency described a well-oiled system cargo was switched at rented godowns, containers tampered with and resealed, and paperwork manipulated by complicit Customs House Agents. Officials allege that at every stage, Jaffer’s approval was considered the final.

Based on inputs from the DRI, the ED registered an Enforcement Case Information Report (ECIR) on March 17, 2020, against Abdul Jaffer and others, following prosecution complaints filed by the Customs Department, Nagpur, under Sections 135, 135A, and 132 of the Customs Act, 1962. and began probing the money laundering trail under the Prevention of Money Laundering Act (PMLA), 2002.

The ED’s investigation found that Jaffer acquired high-value immovable assets using POC. Statements recorded under Section 50 of the PMLA indicated that he tried to justify the source of funds as loans, jewellery sales, and contributions from relatives claims that were found to be false and unsubstantiated. Notably, his wife denied receiving any significant financial support from her parents, directly contradicting his version.

Call Detail Records (CDRs) confirmed Jaffer remained in regular contact with key co-conspirators, including Subramaniam, Meena, and others involved in container stuffing and export logistics. His connections with certain CHAs and exporters also came to light.

Data extracted from his mobile phone revealed multiple images showing the handling of red sanders logs, along with slips recording 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.

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Findings under PMLA conclusively established that Jaffer knowingly assisted in and actively engaged in laundering the POC generated from red sanders smuggling, by concealing, acquiring, possessing, and projecting tainted assets as legitimate.

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