Bengaluru, Karnataka — The Enforcement Directorate (ED) has arrested Karnataka Congress MLA Satish Krishna Sail, 59, in connection with a money laundering case tied to the illegal export of iron ore worth over Rs86.78 crore.
The Karwar MLA was taken into custody on Tuesday night following interrogation at the ED’s Bengaluru zonal office. He was produced before a special court, which granted the ED one-day custody. The agency is seeking an extension of his custodial remand in court on Wednesday.
Sail becomes the second Congress legislator arrested by the ED in recent weeks, following the apprehension of Chitradurga MLA K.C. Veerendra ‘Puppy’ in an unrelated illegal betting and laundering case.
The case against Sail is a spin-off of a 2010 investigation by the Karnataka Lokayukta, which revealed that nearly 8 lakh tonnes of iron ore had been illegally transported from Bellary to Belekeri Port. Sail is allegedly linked to this export through Shree Mallikarjun Shipping Pvt. Ltd., a company believed to be under his control.
Between April 19 and June 10, 2010, the company allegedly exported 1.25 lakh metric tonnes of iron ore fines in violation of a Forest Department seizure order. The ED claims these illegal exports, conducted in collusion with other businesses and Belekeri Port officials, were valued at Rs86.78 crore.
On August 13–14, the ED raided multiple locations across Karwar, Goa, Mumbai, and Delhi. Entities under scrutiny included:
Ashapura Minechem
Shree Lal Mahal
Swastik Steels (Hosapete)
ILC Industries
Sri Lakshmi Venkateshwara Minerals
The raids led to:
Seizure of Rs1.41 crore in cash from Sail’s residence
Rs27 lakh from the office of Sri Lal Mahal Ltd.
6.75 kg of gold and bullion from Sail family bank lockers
Freezing of bank accounts holding Rs4.13 crore in deposits
The special court for MPs and MLAs in Bengaluru had earlier convicted Sail and his associates in the case. However, the Karnataka High Court has suspended his 7-year prison sentence.
The ED continues to investigate Sail’s financial dealings and the broader network involved in Karnataka’s illegal iron ore exports.
