Agency conducted raids in Goa
New Delhi: The Enforcement Directorate on Friday said it has seized Rs 1.41 crore in cash from the residence of Karnataka Congress MLA Satish Krishna Sail, apart from gold jewellery and bullion of 6.75 kg from the bank lockers of his family, as part of a money laundering investigation.
The case pertains to the alleged illegal export of iron ore by a company allegedly linked to the 59-year-old legislator. Sail is an MLA from the Karwar assembly seat in the Uttara Kannada district.
The federal probe agency had conducted searches in this case on August 13-14 in Karwar, Goa, Mumbai and Delhi.
Other entities that were searched under the provisions of the Prevention of Money Laundering Act (PMLA) include companies like Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hosepet), ILC Industries, Sri Lakshmi Venkateshwara Minerals, according to the ED.
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, the agency 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, the Karnataka High Court last year had ordered suspension of the seven-year prison sentence of the MLA.
The 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 19/04/2010 to 10/06/2010, the agency alleged.
This consignment was already under the seizure order of the forest department, Ankola, it said.
“The total value of the illegal exports carried out by Satish Krishna Sail through this company was Rs 86.78 crore,” the ED alleged.
It said the searches resulted in the seizure of Rs 1.41 crore in cash “from” the residence of Sail, apart from Rs 27 lakh in cash that was seized from the office of Sri Lal Mahal Ltd.
Gold jewellery and bullion weighing 6.75 kg were also seized “from the bank locker of the Sail family”, the agency said.
Bank accounts of the accused entities, holding Rs 14.13 crore deposits, have also been frozen during the search operations.
Some “incriminating” evidence in the form of documents, e-mails, records, etc, has also been seized, it claimed.
Agency sources had earlier said that this illegal iron ore fines export caused a Rs 38 crore “loss” to the government exchequer.
