Inside the alleged drug-money trail behind a Mumbai couple’s properties

A suspected drug supply network, cash transactions and a series of property purchases have come under scrutiny in a money-laundering investigation involving a Mumbai couple.

The Enforcement Directorate (ED) has accused Faisal Shaikh, his wife Alifya Shaikh and 10 others of involvement in laundering proceeds allegedly generated through the trafficking of mephedrone, a synthetic stimulant commonly known as MD.

According to the agency’s investigation, Faisal Shaikh allegedly procured around 80 kg of the drug every month from suspected trafficker Salim Dola from 2022 onwards. The substance was then allegedly distributed through a network of suppliers.

Investigators are examining how the money generated by this trade was moved through financial accounts and subsequently invested in property.

The economics of an alleged drug operation

The ED alleges that the drug was purchased at approximately Rs 7 lakh per kg and sold for around Rs 8 lakh per kg.

If 80 kg was traded every month at these prices, the difference between the reported purchase and sale rates would amount to approximately Rs 80 lakh monthly, before accounting for other expenses. This is a calculation based on the alleged figures, not a verified estimate of the couple’s profits.

The investigation centres on whether money generated through the alleged sales was used to acquire assets and whether financial transactions were structured to conceal its origins.

The ED has alleged that funds were moved through bank accounts belonging to the accused, their relatives and associated business entities. Some of these firms are suspected of having been used to route money despite allegedly lacking genuine commercial operations.

Seven properties under the scanner

The agency has provisionally attached seven immovable properties in Mumbai valued at approximately Rs 5.88 crore.

The action is aimed at securing assets that investigators suspect were purchased using proceeds of crime. A provisional attachment, however, is not a final determination that the properties were acquired illegally.

The case stems from an investigation by the Narcotics Control Bureau (NCB) into the alleged mephedrone distribution network. According to published reports, the NCB recovered around 15 kg of MD and Rs 1.10 crore in cash during searches linked to the investigation.

Cash and jewellery were also reportedly found in bank lockers associated with the case.

The ED’s probe is focused on establishing a financial trail connecting the suspected narcotics operation to the properties and other assets under investigation.

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Tracing the alleged supply chain

Investigators have identified Salim Dola as a suspected supplier from whom the couple allegedly obtained the drug.

The alleged distribution network is believed to have involved several intermediaries, allowing the substance to move beyond its initial suppliers to other distributors.

Mephedrone is regulated under India’s Narcotic Drugs and Psychotropic Substances Act. Unlawful manufacture, possession and trafficking can attract severe penalties under the law.

The investigation is also examining the role of financial intermediaries and business entities that may have helped move the alleged proceeds through the formal banking system.

The money trail behind the properties

For the ED, establishing the source of the funds is central to the case. Investigators must determine whether the money used for the property transactions can be traced to the alleged drug sales and whether the accused knowingly dealt with proceeds of crime.

The agency has filed a prosecution complaint against the couple and 10 others under the Prevention of Money Laundering Act (PMLA).

The allegations remain subject to judicial proceedings, and the accused are presumed innocent unless proven guilty in court.