Enforcement Directorate on Illegal Iron Ore Export through Belekeri Port.

Headnote:

The Directorate of Enforcement (ED), Bangalore Zonal Office, conducted extensive search operations under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) at 20 premises located in Bangalore, Hospet, and Gurugram in connection with the illegal export of iron ore through Belekeri Port. The investigation revealed a large-scale money laundering network involving exporters, traders, and intermediaries, resulting in the freezing of proceeds of crime worth ₹12.84 crore and seizure of ₹42 lakh in cash. Documents related to immovable properties acquired from illegal proceeds were also recovered.

Background:

• The searches were carried out on 16.10.2025 at 20 locations in Bangalore, Hospet, and Gurugram in connection with the illegal iron ore export case.

• The operation was conducted based on multiple FIRs and charge sheets filed by the CBI, as directed by the Hon’ble Supreme Court of India, relating to illegal exports exceeding 50,000 MT of iron ore from Belekeri Port, Karnataka.

• During the search, incriminating documents evidencing illegal exports and money laundering were seized. Proceeds of crime worth ₹12.84 crore were frozen under Section 17(1A) of PMLA, along with the seizure of ₹42 lakh in cash.

• Documents showing purchase of immovable properties using illegally generated funds were also recovered.

Findings / ED’s Observations:

• The investigation uncovered a well-organized network of excavators, traders, transporters, and exporters who acted in collusion to evade payment of royalty and statutory taxes to the state exchequer.

• Illegally mined iron ore was exported through intermediaries, with dummy and fictitious entities being used to disguise the origin and movement of ore.

• Exporters failed to produce complete documentation for exported consignments, and the illegal profits were laundered through business accounts and shown as legitimate income.

• The proceeds of crime were utilized by key management personnel (KMPs) and associated entities for personal and corporate enrichment.

Entities and Individuals Covered

• M/s MSPL Ltd — Narendra Kumar Baldota

• M/s Greentex Mining Industries Ltd — Ajay Kharwanda

• M/s Srinivasa Minerals Trading Co — Y. Srinivas Rao

• M/s Arshad Exports — Md. Asghar Khan

• M/s SVM Nett Project Solutions Pvt. Ltd — Basavaraj B.

• M/s Alphine Minmetals India Pvt. Ltd — Gagan Shukla

Legal Provisions Discussed:

• Section 17(1A), Prevention of Money Laundering Act, 2002 (PMLA) — Power to freeze proceeds of crime during search and seizure operations.

• Sections 3 & 4, PMLA — Definition and punishment for money laundering.

• Supreme Court Directions — Basis for initiation of CBI and subsequent ED investigation into illegal iron ore exports exceeding statutory limits.

Current Status

The proceeds of crime worth ₹12.84 crore have been frozen, and cash amounting to ₹42 lakh seized. Further investigation into the money laundering network and its international linkages is ongoing.

Citation: 2025:ED:BLR:1017

Case: Directorate of Enforcement (ED), Bangalore Zonal Office — Illegal Iron Ore Export Investigation

Authority: Directorate of Enforcement, Bangalore Zonal Office

Act Invoked: Prevention of Money Laundering Act, 2002 (PMLA)