Panaji, April 21 (IANS) Goa police has frozen all the assets, including cash, properties and investments, of a notorious drug peddler, a senior police officer said. It is the first time that such action has been taken against a drug peddler.

Cash, several properties and assets worth Rs.2 crore belonging to Sadanand Chimulkar were frozen under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) because they were bought from proceeds of narcotics sale, Superintendent of Police Veenu Bansal told IANS Tuesday.

"The assets were obtained as proceeds from the narcotics trade. This is the first time ever that we have taken steps to freeze assets of drug peddlers," Bansal said, adding that the move would serve as a deterrent to drug peddlers at large in the state.

"The aim is to send a message to anyone linked to the drugs trade that on arrest, money amassed from the drug trade over the years can be frozen. On conviction, the frozen assets are automatically seized by the government," Bansal said.

Sadanand Chimulkar alias Bhui, a notorious drug dealer from Anjuna, was arrested in January this year with drugs worth Rs.4 lakh.

According to police records Bhui had more than 21 known bank accounts, over a dozen life insurance policies and properties in several parts of Goa and Maharashtra.

Bhui and his wife also owned more than a kilogram of gold, all of which has been frozen under SAFEMA, a finance ministry legislation.

"Bhui's wife had withdrawn Rs.20 lakh after her husband's arrest. That has been frozen too," Bansal said.

Goa, infamously known as a narcotics haven, has of late seen the arrest of two other foreign drug dealers named David Driham alias Dudu and Yaniv Benaim alias Atala.

The arrests by the Goa Police followed categorical statements by Home Minister Ravi Naik that there were no drugs being sold in Goa.