ED files money laundering chargesheet against Karwar MLA Satish Krishna Sail in Rs 44.09 crore iron ore export case

New Delhi [India] November 15 : The Enforcement Directorate (ED) has filed a Prosecution Complaint or chargesheet against Karnataka's Karwar MLA Satish Krishna Sail in connection with the export of seized iron ore, which caused a loss of Rs 44.09 crore to the government exchequer.
In the chargesheet, filed before the special Prevention of Money Laundering Act (PMLA) court in Bengaluru, the agency has also named Shree Mallikarjun Shipping Pvt Ltd.
ED files money laundering chargesheet against Karwar MLA Satish Krishna Sail in Rs 44.09 crore iron ore export case, the managing director of Shree Mallikarjun Shipping Pvt Ltd, is accused of entering into a criminal conspiracy with other accused persons and illegally purchasing the seized iron ore stacked at the premises of Belekeri port, disregarding the orders of the Karnataka High Court and seizure orders issued by the forest department.
The iron ore so purchased illegally from Ashapura Minechem Ltd, ILC Industries Ltd, Swastik Steel (Hospet) Pvt Lt, Sri Lakshmi Venkateshwara Minerals, Shri Lal Mahal Ltd and PJS Overseas Ltd was exported by the accused persons to the buyers in China, in connivance with Mahesh J Biliye, Port Conservator of Belekeri port, said the ED in a statement.
The criminal act of the accused persons caused a loss of Rs 44.09 crore to the government exchequer.
Furthermore, the agency stated that its investigation has revealed that the main accused, Satish Krishna Sail, made payments of approximately Rs 46.18 crore to other accused persons for the illegal purchase of seized iron ore.
The seized iron ore, ED said, was exported through his undisclosed foreign entity, JI (HEBEI) Iron and Steel Investment Company Limited, Hong Kong (formerly known as Mallikarjun Shipping (HK) Ltd, instead of exporting directly to the ultimate buyers in China, thereby effectively concealing and laundering the Proceeds of Crime (POC).
In this manner, the accused company, Shree Mallikarjun Shipping Pvt Ltd, derived POC (profits) amounting to Rs 27.07 crore, while Satish Krishna Sail has derived around Rs 2.09 crore through his foreign entity, JI (HEBEI) Iron and Steel Investment Company Ltd, Hong Kong.
"The investigation has also revealed that Satish Krishna Sail maintained several foreign bank accounts, through his foreign entity, in Standard Chartered Bank (Hong Kong) Limited & Industrial and Commercial Bank of China (Asia) Limited (ICBC Bank), Hong Kong," said the ED.
Earlier, ED conducted searches and arrested Sathish Krishna Sail and seized cash amounting to Rs 1.68 crore, bullion and gold weighing 6.75 kgs (valued at around Rs 6.58 crore) and frozen bank accounts to the tune of Rs 14.13 crore lying in the bank accounts of the accused persons and further attached three immovable properties worth Rs 21 crore.
Later, Satish Krishna Sail was granted interim medical bail, which was cancelled by the Special Court on November 11.