Daijiworld Media Network - Bengaluru
Bengaluru, Nov 16: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has filed a prosecution complaint before the Special Court for Prevention of Money Laundering Act (PMLA) cases against Mallikarjun Shipping Pvt Ltd and its managing director, Satish Krishna Sail, who is also the MLA of Karwar, in connection with the alleged illegal export of seized iron ore valued at Rs 44.09 crore.
According to the ED, Sail allegedly conspired with several other accused to unlawfully acquire iron ore that had been seized and stockpiled at Belekeri port, disregarding the directives of the Karnataka High Court and the Forest Department. The ore, belonging to different mining and trading firms, was then exported to Chinese buyers with the alleged involvement of Mahesh J Biliye, Port Conservator at Belekeri.
Investigators stated that Sail paid approximately Rs 46.18 crore to various accused for these illegal transactions. The iron ore was exported through a Hong Kong–based entity, JI (Hebei) Iron and Steel Investment Co Ltd—formerly Mallikarjun Shipping HK Ltd—rather than being routed directly to buyers in China. The ED alleges this was done to obscure and launder the proceeds from the illegal exports.
The agency said the company generated proceeds of crime amounting to Rs 27.07 crore, while Sail personally benefited to the extent of Rs 2.09 crore through the Hong Kong entity. He is also accused of maintaining multiple foreign bank accounts with Standard Chartered Bank (Hong Kong) and the Industrial and Commercial Bank of China (ICBC), Hong Kong.
Searches conducted earlier in the case resulted in the seizure of Rs 1.68 crore in cash, 6.75 kg of gold and bullion worth about Rs 6.58 crore, and the freezing of several bank accounts together holding Rs 14.13 crore. Three immovable properties valued at Rs 21 crore have also been provisionally attached.
Sail, who was arrested during the investigation, was granted interim medical bail, which the Special Court cancelled on November 7.