ED Seizes ₹1.41 Crore Cash, 6.75 kg Gold from Karnataka Congress MLA’s Premises in Iron Ore Export Case

PTI, New Delhi, Aug. 15, 2025 :  The Enforcement Directorate (ED) on Friday said it seized ₹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.

Sail, 59, represents the Karwar constituency in Uttara Kannada district. He could not be immediately contacted for his reaction to the ED’s allegations.

The searches, conducted on August 13–14 in Karwar, Goa, Mumbai, and Delhi, also covered several companies including Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hospet), ILC Industries, and Sri Lakshmi Venkateshwara Minerals.

According to the agency, all these entities — including Sail — were convicted by the special court for MPs and MLAs in Bengaluru for the “illegal” export of iron ore fines through Shree Mallikarjun Shipping Pvt. Ltd., allegedly owned by Sail, in collusion with other firms.

The ED probe is based on the conviction order, though the Karnataka High Court had last year suspended Sail’s seven-year prison sentence.

Investigators allege that between April 19 and June 10, 2010, Sail and associates illegally exported around 1.25 lakh metric tonnes of iron ore fines from Belekeri Port in violation of a Forest Department seizure order. The consignment was valued at ₹86.78 crore, and the alleged activity caused a loss of ₹38 crore to the exchequer.

The ED said ₹27 lakh was also recovered from the office of Sri Lal Mahal Ltd. In addition, bank accounts of the accused entities holding ₹14.13 crore have been frozen, and documents, emails, and other records seized.

The case stems from a 2010 Karnataka Lokayukta probe, which uncovered about eight lakh tonnes of illegally transported iron ore from Bellary to Belekeri Port.