The Enforcement Directorate (ED) announced on Saturday that it has filed a charge sheet against Karnataka Congress MLA Satish Krishna Sail and a company linked to him in a money laundering investigation. The case relates to the alleged illegal export of iron ore valued at ₹44 crore.
The federal probe agency confirmed in a statement that the prosecution complaint was filed before a designated Prevention of Money Laundering Act (PMLA) court in Bengaluru.
Sail, the 59-year-old legislator for the Karwar assembly seat in Uttara Kannada, and his company Shree Mallikarjun Shipping Pvt Ltd have been named as accused in the charge sheet. The ED noted that the MLA was the company's Managing Director (MD). Sail had previously been arrested by the ED in September.
The case against him pertains to the alleged illegal export of iron ore by the company reportedly linked to him.
The ED investigation originated from a 2010 case filed by the Karnataka Lokayukta, which discovered that about 8 lakh tonnes of iron ore were illegally transported from Bellary to the Belekeri port. The ED claimed its investigation found that this iron ore was exported by the accused persons to buyers in China, acting in connivance with Mahesh J Biliye, the port conservator of Belekeri port.
"The criminal act of the accused persons caused a loss of ₹44.09 crore to the government exchequer," the agency said.
According to the ED, Sail made payments worth ₹46.18 crore to other accused persons towards the illegal purchase of the iron ore.
The seized iron ore was allegedly exported through Sail’s "undisclosed" foreign entity, JI (HEBEI) Iron and Steel Investment Company Limited, Hong Kong (formerly known as Mallikarjun Shipping (HK) Ltd.), instead of being sent directly to the ultimate buyers in China. The ED asserts this method was used for "concealing and laundering" the proceeds of crime.
The ED probe also found that the legislator maintained several foreign bank accounts through his foreign entity in Standard Chartered Bank (Hong Kong) and in the Industrial and Commercial Bank of China (Asia) (ICBC Bank), Hong Kong. Earlier this month, the ED attached Sail’s assets worth ₹21 crore.
Also read: Karnataka Cabinet approves Space, IT policies and LEAP programme
Follow us
