The Enforcement Directorate has arrested Karnataka Congress MLA Satish Krishna Sail in a money laundering case linked to alleged illegal iron ore export in the state, official sources said on Wednesday.
The 59-year-old legislator from the Karwar Assembly seat in Uttara Kannada was taken into custody late Tuesday night following his questioning at the federal probe agency's Bengaluru zonal office, the sources said.
He was produced before a special court on Tuesday that sent him to one-day custody of the Enforcement Directorate (ED). He will be produced before the court again on Wednesday where the agency will seek for his fresh custodial remand, the sources said.
Sail is the second Congress MLA to be arrested by the ED over the last few weeks. Late last month, the agency had arrested Chitradurga MLA K C Veerendra 'Puppy' in an alleged illegal betting linked money laundering case.
The case against Sail pertains to alleged illegal export of iron ore by a company allegedly linked to the legislator.
The ED investigation originated from a 2010 case by the Karnataka Lokayukta, which discovered about eight lakh tons of illegally transported iron ore from Bellary to Belekeri port.
The ED had conducted searches in this case on August 13-14 in Karwar, Goa, Mumbai and Delhi.
Some entities that were searched included companies like Ashapura Minechem, Shree Lal Mahal, Swastik Steels (Hosepet), ILC Industries, Sri Lakshmi Venkateshwara Minerals, according to the ED.
All these entities, including Sail, were convicted by the special court for MPs and MLAs in Bengaluru for "illegal" export of iron ore fines carried out by Shree Mallikarjun Shipping Pvt. Ltd. in collusion with others, the agency had said in a statement.
Mallikarjun Shipping is reported to be a company of Sail.
The ED said its probe against the MLA and others is based on this conviction order issued by the special court.
However, the Karnataka High Court last year had ordered suspension of the seven-year prison sentence of the MLA.
ED investigation found that Sail, in collusion with other business entities and Belekeri Port officials, had "illegally" exported iron ore fines weighing nearly 1.25 lakh metric tonnes between April 19, 2010 and June 10, 2010, the agency had alleged.
This consignment was already under the seizure order of the Forest Department, Ankola, it said.
"The total value of the illegal exports carried out by Satish Krishna Sail, through this company was Rs 86.78 crore," the ED alleged.
It said the searches resulted in the seizure Rs 1.41 crore cash "from the" residence of Sail apart from Rs 27 lakh cash that was seized from the office of Sri Lal Mahal Ltd.
Gold jewellery and bullion weighing 6.75 kgs was also seized "from the bank locker of Sail family", the agency had said.
Bank accounts of the accused entities, holding Rs 14.13 crore deposits, were also frozen during the search operations.
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