BENGALURU: Directorate of Enforcement (ED), Bengaluru, has filed prosecution complaint (PC) before the Special Court (Prevention of Money Laundering Act), Bengaluru, against Shree Mallikarjun Shipping Pvt Ltd (SMSPL) and its Managing Director Satish Krishna Sail, Congress MLA from Karwar under the provisions of PMLA, 2002 in connection with export of seized iron ore which caused loss of Rs 44.09 crore to the government exchequer.
In an official release on Saturday, the ED said that “the accused Satish Sail had entered into criminal conspiracy with other accused persons and illegally purchased the seized iron ore stacked at the premises of Belekeri port, disregarding the orders of High Court of Karnataka and seizure orders issued by the Forest Department.”
“The iron ore purchased illegally from Ashapura Minechem Ltd, ILC Industries Ltd, Swastik Steel (Hospet) Pvt Ltd, Sri Lakshmi Venkateshwara Minerals, Shri Lal Mahal Ltd and PJS Overseas Ltd, was exported by the accused persons to buyers in China, in connivance with Mahesh J Biliye, the then port conservator of Belekeri port. The criminal act of the accused persons caused loss of Rs 44.09 crore to the government exchequer,” added the ED.
According to the ED, the “investigation has revealed that the main accused, Satish, had made payments of approximately Rs 46.18 crore to other accused persons, towards the illegal purchase of seized iron ore.
The said seized iron ore was exported through his undisclosed foreign entity, JI (HEBEI) Iron and Steel Investment Co Ltd, Hong Kong (formerly, Mallikarjun Shipping (HK) Ltd), instead of exporting directly to the ultimate buyers in China, thereby effectively concealing and laundering the Proceeds of Crime,” the agency stated.