The Directorate of Enforcement (ED), Bengaluru Zonal Office, on Saturday filed a prosecution complaint before the Special Court for Prevention of Money Laundering Act cases against Mallikarjun Shipping Pvt. Ltd. and its managing director Satish Krishna Sail, who is also Karwar MLA, in connection with the illegal export of seized iron ore, causing a loss of ₹44.09 crore to the State exchequer.
According to ED officials, Mr. Sail entered into a criminal conspiracy with several accused persons to illegally purchase iron ore that had been seized and stockpiled at Belekeri port, in violation of the High Court of Karnataka orders and the Forest Department seizure directives.
The ore, originally belonging to multiple mining and trading companies, was exported to buyers in China with the alleged connivance of Mahesh J. Biliye, Port Conservator at Belekeri.
How exports were made
Investigators found that Mr. Sail made payments amounting to ₹46.18 crore to the other accused towards these illegal purchases. The seized ore was exported through an undisclosed foreign entity identified as JI (Hebei) Iron and Steel Investment Co. Ltd., Hong Kong (formerly Mallikarjun Shipping HK Ltd.), instead of being shipped directly to Chinese buyers, a move ED claims was intended to conceal and launder the proceeds of crime.
