Congress MLA Satish Krishna Sail arrested in money laundering case
What's the story
The Enforcement Directorate (ED) has arrested Karnataka Congress MLA Satish Krishna Sail in a money laundering case. The 59-year-old legislator, who represents the Karwar Assembly seat in Uttara Kannada, was taken into custody late Tuesday night after being questioned at the ED's Bengaluru zonal office. He was produced before a special court on Wednesday and remanded to one-day ED custody.
Case details
Second Congress MLA arrested by ED in recent weeks
Sail is the second Congress MLA arrested by the ED in recent weeks. The case against him relates to alleged illegal iron ore exports by a company linked to him. The investigation traces back to a 2010 case registered by Karnataka Lokayukta, which unearthed around eight lakh tons of illegally exported iron ore from Bellary to Belekeri port.
Probe progress
Searches conducted across multiple states
The ED had conducted searches in connection with this case on August 13-14 across Karwar, Goa, Mumbai, and Delhi. Companies such as Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hosepet), ILC Industries, and Sri Lakshmi Venkateshwara Minerals were among those searched. The investigation found illegal export of iron ore fines through Shree Mallikarjun Shipping Pvt Ltd., allegedly linked to Sail.
Sentence suspension
Probe based on conviction order
The ED's probe against Sail is based on this conviction order. However, the Karnataka High Court had suspended his seven-year prison sentence last year. The investigation found that between April 19, 2010, and June 10, 2010, Sail allegedly colluded with business entities and Belekeri Port officials to export nearly 1.25 lakh metric tons of iron ore fines illegally.
Financial impact
ED's allegations against Sail
The ED alleged that these illegal exports were valued at ₹86.78 crore. Searches also led to the seizure of ₹1.41 crore cash from Sail's residence and ₹27 lakh from Sri Lal Mahal Ltd.'s office. Gold jewelry and bullion weighing 6.75kg were seized from a bank locker belonging to Sail's family. Bank accounts of accused entities with deposits worth ₹14.13 crore were also frozen during the search operations.