ED Bengaluru on PMLA: Attachment of Properties in Illegal Iron Ore Export Case.

Headnote:

The Directorate of Enforcement (ED), Bengaluru Zonal Office, provisionally attached immovable properties worth Rs. 21 Crore under the Prevention of Money Laundering Act, 2002 (PMLA) in the matter of Satish Krishna Sail, MLA from Karwar constituency, and others, for illegal export of iron ore fines through M/s Shree Mallikarjun Shipping Pvt Ltd (SMSPL), Goa. The Special Court later cancelled the interim medical bail granted to Satish Krishna Sail, reinforcing ED’s authority to proceed with attachment and investigation.

Background:

1. Forest Department officials visited Belekeri Port on 15/03/2010 and seized around 5 Lakh MT of iron ore fines for being without valid permits from Mines & Geology and Forest Departments.
2. ED previously conducted searches across Karnataka, Goa, Delhi, and Mumbai covering 15 premises, arresting Satish Krishna Sail and seizing cash and gold worth approx. Rs. 8 Crore.
3. Satish Krishna Sail claimed to have purchased 1.54631 lakh MT of seized iron ore fines from various suppliers. He allegedly colluded with the port conservator and exported the illegally procured iron ore to China through vessels like MV Columbia and MV Mandarin Harvest, using a layering mechanism via a Hong Kong-based company.

Court/ED Observations

1. ED has authority under PMLA to attach properties involved in money laundering and proceeds of crime.
2. Interim medical bail of the accused was cancelled, enabling ED to proceed with the investigation and attachment.
3. The investigation highlighted collusion between the accused and port authorities to facilitate illegal export and money laundering.

Attached Properties:

1. 12,500 sq. meters of open land in Chicalim Village, Mormugao.
2. 16,850 sq. meters of agricultural land “Pedro Galle Cotta,” Mormugao Taluk, South Goa.
3. Commercial premises on 1st–5th floors of Our Lady of Merces Building, Vasco Da Gama, Goa, valued at approx. Rs. 64 Crore.

Legal Provisions Discussed:

1. Prevention of Money Laundering Act, 2002 – Attachment of property as proceeds of crime.
2. ED powers for search, seizure, arrest, and investigation in economic offences.

Further Investigation:

1. Investigation into illegal export, layering, and collusion remains ongoing.

Citation: 2025:EDBGL:110825

Case: Satish Krishna Sail & Ors. v. Directorate of Enforcement

Court: Hon’ble Special Court, PMLA, Bengaluru Zonal Office

Date of Decision: 06–07 November 2025

Case/Reference No.: Not Specified