ED Arrests Karnataka Congress MLA Satish Krishna Sail In Money Laundering Case, Here's All Details

(MENAFN- Live Mint) The Enforcement Directorate on Tuesday arrested Karnataka Congress MLA Satish Krishna Sail in a money laundering case linked to alleged illegal iron ore export in the state, reported PTI quoting sources.

Following his questioning at the federal probe agency's Bengaluru zonal office, the Congress MLA from Karwar Assembly seat in Uttara Kannada was taken into custody late Tuesday night.

Satish Krishna Sail was produced before a special court on Tuesday which sent him to one-day custody of the Enforcement Directorate (ED). The Congress MLA will be produced before the court again on Wednesday where the agency will seek for his fresh custodial remand.

Over the last few weeks, Sail is the second Congress MLA to be arrested by the ED. Earlier in August, the ED arrested Chitradurga MLA K C Veerendra 'Puppy' in an alleged illegal betting linked money laundering case.

About the case:

The ED arrested Sail in an alleged illegal export of iron ore by a company allegedly linked to the legislator.

The probe originated from a 2010 case by the Karnataka Lokayukta, which discovered about eight lakh tons of illegally transported iron ore from Bellary to Belekeri port.

The ED had conducted searches in this case on August 13-14 in Karwar, Goa, Mumbai and Delhi.

According to ED, a few entities that were searched included companies like Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hosepet), ILC Industries, Sri Lakshmi Venkateshwara Minerals.

All these entities, including Sail, were convicted by the special court for MPs and MLAs in Bengaluru for "illegal" export of iron ore fines carried out by Shree Mallikarjun Shipping Pvt. Ltd. in collusion with others, ED had said in a statement.

Mallikarjun Shipping is reported to be a company of Sail. The ED said its probe against the MLA and others is based on this conviction order issued by the special court.

However in 2024, the Karnataka High Court had ordered suspension of the seven-year prison sentence of the MLA.

ED investigation found that Sail, in collusion with other business entities and Belekeri Port officials, had "illegally" exported iron ore fines weighing nearly 1.25 lakh metric tonnes between April 19, 2010 and June 10, 2010, the agency had alleged, adding, this consignment was already under the seizure order of the Forest Department, Ankola.

"The total value of the illegal exports carried out by Satish Krishna Sail, through this company was ₹86.78 crore," the ED alleged.

The ED stated that the searches resulted in the seizure ₹1.41 crore cash "from the" residence of Sail apart from ₹27 lakh cash that was seized from the office of Sri Lal Mahal Ltd. It added they seized gold jewellery and bullion weighing 6.75 kgs" from the bank locker of Sail family".

During the search operations, ED froze bank accounts of the accused entities, holding ₹14.13 crore deposits.

With agency inputs.

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