ED Cracks Down on Karnataka MLA Satish Sail in Money Laundering Case
Bengaluru’s political scene is buzzing again as the Enforcement Directorate (ED) has made a big move against Congress MLA Satish Krishna Sail from Karwar. On September 9, the ED arrested the MLA under the Prevention of Money Laundering Act (PMLA), 2002, for his alleged role in a massive money laundering scandal tied to illegal iron ore exports. This comes hot on the heels of his conviction in the infamous Belekeri iron ore export case, which caused a whopping loss of Rs 86.78 crore to Karnataka’s taxpayers.
After the arrest, ED officials took Sail to the Special Court for MPs and MLAs in Bengaluru. The court granted them three days of custody to dig deeper. This isn’t Sail’s first brush with the law— he’s been in the spotlight for years over illegal mining activities that rocked the state.
The drama kicked off back in 2010 when the Central Bureau of Investigation (CBI) stepped in. They filed charges against Sail’s company, Mallikarjuna Shipping Private Limited, following Supreme Court orders on illegal mining and iron ore transport from Karnataka between 2009 and 2010. According to the CBI, the company exported a staggering 7.23 lakh tonnes of seized iron ore fines through Belekeri Port in just eight months, all without proper permits.
A Central Empowered Committee (CEC) report exposed the scale of the scam: 73 companies illegally shipped out 88.6 lakh metric tonnes of iron ore, but they only had permits for 38.22 lakh tonnes. Sail’s firm was right in the middle of it, exporting that huge 7.23 lakh tonnes illegally. His house got raided in 2012, and he spent over a year in jail after his 2013 arrest before getting out on bail.
Fast forward to 2024, and things heated up again. On October 26, the Karnataka Special Court convicted Sail and 12 others—including companies like Ashapura Minechem Ltd., ILC Industries Ltd., Swastik Steel (Hospet) Pvt. Ltd., Sri Lakshmi Venkateshwara Minerals, and Shri Lal Mahal Ltd.—in six related cases. The court slapped him with a seven-year prison term and a Rs 44 crore fine. It was a major blow to the Congress-led Karnataka government, with Sail listed as the second accused in the main FIR.
Sail didn’t take it lying down. He appealed to the Karnataka High Court, and in November 2024, Justice M. Nagaprasanna’s bench put the sentence on hold while granting bail. But he had to deposit 25% of the fine amount as a condition.
The ED wasn’t done yet. They launched search operations on August 13 and 14 at locations in Karwar, Hospet, Goa, Mumbai, and New Delhi. The raids uncovered a treasure trove of evidence: incriminating documents, emails, and records pointing to money laundering from the illegal exports.
The hauls were impressive— ED seized Rs 1.68 crore in cash, 6.75 kg of gold and jewellery worth Rs 6.58 crore, and froze Rs 14.73 crore in bank accounts. These assets link back to the broader illegal mining and export racket.
Right now, the investigation continues, with ED probing deeper into the money trail. For Karnataka Congress, this arrest spells more trouble in a case that’s been simmering for over a decade. Stay tuned as more details emerge on this high-stakes money laundering probe.
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