The Enforcement Directorate (ED) has seized Rs 1.41 crore in cash from the residence of Karnataka Congress MLA Satish Krishna Sail and 6.75 kg of gold jewellery and bullion from his family’s bank lockers, as part of a money laundering probe into alleged illegal iron ore exports. The 59-year-old legislator from Karwar, Uttara Kannada, is accused of orchestrating illicit exports through his company, Shree Mallikarjun Shipping Pvt. Ltd., causing significant losses to the government.
The ED conducted raids on August 13-14 across Karwar, Goa, Mumbai, and Delhi, targeting Sail and related entities, including Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hosepet), ILC Industries, and Sri Lakshmi Venkateshwara Minerals. The agency’s actions, under the Prevention of Money Laundering Act (PMLA), stem from a Bengaluru special court’s conviction of Sail and others for illegally exporting iron ore fines. Although the Karnataka High Court suspended Sail’s seven-year prison sentence last year, the ED’s investigation continues based on the conviction order.
According to the ED, Sail, in collusion with business entities and Belekeri Port officials, illegally exported 1.25 lakh metric tonnes of iron ore fines between April 19 and June 10, 2010, despite a seizure order by the Forest Department, Ankola. The illicit exports, valued at Rs 86.78 crore, allegedly caused a Rs 38 crore loss to the government exchequer. The probe, initiated following a 2010 Karnataka Lokayukta investigation into eight lakh tons of illegally transported iron ore from Bellary to Belekeri port, uncovered further evidence.
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The raids led to additional seizures, including Rs 27 lakh from the office of Sri Lal Mahal Ltd. and the freezing of bank accounts holding Rs 14.13 crore. The ED also recovered incriminating documents, emails, and records. The investigation continues to unravel the extent of the alleged financial misconduct tied to Sail and his associates.
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