MADURAI (India CSR): The Directorate of Enforcement’s Madurai Sub Zonal Office has conducted searches at six residential premises in Tamil Nadu’s Nagapattinam district in a money-laundering investigation linked to the alleged trafficking of methamphetamine and ganja. The searches were carried out on September 3, 2026, under the Prevention of Money Laundering Act (PMLA), 2002, the Enforcement Directorate (ED) said in a press release issued on September 4.
What Is The Case?
The ED’s case relates to alleged illegal trafficking of psychotropic substances, including methamphetamine and ganja. The agency said it began its investigation on the basis of a complaint filed by the Narcotics Control Bureau’s Chennai Zonal Unit before the Special Court for EC and NDPS Act cases. According to the ED, its investigation is focused on the alleged proceeds of crime generated through drug trafficking and their alleged use in acquiring properties and other assets.
The agency stated that its searches resulted in the seizure of digital devices and documents that it described as incriminating. These materials are stated to relate to financial transactions and investments in immovable properties by the accused persons.
Who Is Under Investigation?
The ED named M. Alex, a resident of Vilundamavadi in Nagapattinam district, in its release. It stated that the Narcotics Control Bureau had intercepted him on April 13, 2025, near Bharathi Nagar on the Pudukkottai-Madurai Road at Melavilakudi while he was allegedly carrying methamphetamine hydrochloride. The ED stated that M. Alex was a repeated offender. It further said that M. Alex and his father, Mahalingam, had been accused in other FIRs registered by Tamil Nadu Police during 2023 and 2024 in matters relating to alleged trafficking of methamphetamine and ganja.
The press release does not state whether any person was arrested during the September 3, 2026 search operation.
Where Were The Searches Conducted?
The ED conducted searches at six residential premises located in Nagapattinam district. The agency stated that its investigation had identified immovable assets, including shrimp farms, in Nagapattinam, Velankanni and Thaliyamadi. According to the ED, the properties and movable assets under scrutiny were acquired in the names of M. Alex and his family members. The agency referred to vehicles as among the movable assets connected with its investigation.
The release does not provide the addresses of the six residential premises searched or the valuation of the properties and vehicles referred to by the agency.
When Did The Investigation Develop?
The underlying Narcotics Control Bureau action cited by the ED took place on April 13, 2025. The ED conducted its latest searches on September 3, 2026, and released details of the action on September 4, 2026. The agency said the investigation followed a complaint filed by the NCB’s Chennai Zonal Unit in the Special Court for EC and NDPS Act cases. It did not state the date on which the complaint was filed.
The ED has said further investigation in the case is under progress.
Why Did ED Conduct Searches?
The ED alleged that M. Alex generated substantial illegal income from trafficking ganja and methamphetamine. It said the alleged proceeds of crime were invested in immovable properties, shrimp farms and vehicles. The agency further alleged that the money was layered through bank accounts belonging to family members and third parties. According to the ED, loans were raised in the names of family members and other third-party associates, and were later repaid using alleged proceeds of crime in cash and through certain other entities.
The ED’s statement records the agency’s investigation findings and allegations. The release does not mention any judicial finding on these allegations.
