Directorate of Enforcement (ED) on Illegal Iron Ore Export under the Prevention of Money Laundering Act, 2002.

Headnote:

The Enforcement Directorate (ED), Bangalore Zonal Office, conducted search operations under the Prevention of Money Laundering Act (PMLA), 2002 at 20 premises in Bangalore, Hospet, and Gurugram on 16 October 2025. The operations targeted illegal Iron Ore export through Belekeri Port, leading to the seizure of incriminating documents, cash, and freezing of proceeds of crime.

Background:

1. The investigation was initiated based on multiple FIRs and charge-sheets filed by the CBI under the directions of the Hon’ble Supreme Court of India concerning illegal export of Iron Ore exceeding 50,000 MT from Belekeri Port, Karnataka.
2. ED searches revealed documents and assets linked to illegal proceeds amounting to Rs. 12.84 Crores frozen under Section 17(1-A) of PMLA, along with Rs. 42 Lakhs in cash seized.
3. Documents related to immovable properties acquired through illegal Iron Ore export profits were also recovered.
4. The investigation revealed a collusive chain of excavators, traders, transporters, and exporters who circumvented royalty and statutory tax obligations.

Court / ED Observations:

1. The illegal Iron Ore was exported through intermediaries and dummy/fictitious entities, constituting a complex money laundering scheme.
2. Profits generated from these operations were diverted to the exporting entities and their Key Management Persons, falsely portrayed as legitimate business income.
3. The following entities and their Key Management Persons were identified as major beneficiaries:
4. M/s MSPL Ltd – Narendra Kumar Baldota
5. M/s Greentex Mining Industries Ltd – Ajay Kharwanda
6. M/s Srinivasa Minerals Trading Co – Y. Srinivas Rao
7. M/s Arshad Exports – Md. Asghar Khan
8. M/s SVM Nett Project Solutions Pvt. Ltd – Basavaraj B
9. M/s Alphine Minmetals India Pvt. Ltd. – Gagan Shukla

Legal Provisions Discussed

1. Section 17(1-A), Prevention of Money Laundering Act, 2002 (PMLA) – Attachment of proceeds of crime.
2. Foreign Exchange / Export Regulations – Compliance requirements and penalties for illegal export of minerals.
3. CBI FIRs and Supreme Court Directions – Basis for coordinated investigation and enforcement action.

Further Investigation:

1. ED investigation is ongoing to uncover the full extent of the illegal export network, the flow of proceeds, and to prosecute responsible entities and individuals.

Citation: 2025:ED:PMLA:003

Case: Directorate of Enforcement v. M/s MSPL Ltd. & Ors.

Court / Authority: Directorate of Enforcement, Bangalore Zonal Office

Case / File No.: Search & Seizure Operations under PMLA, 2002