The Directorate of Enforcement (ED), specifically its Bangalore Zonal Office, conducted extensive search operations on Thursday, targeting 20 locations across Bengaluru, Hosapete, and Gurugram. These actions are part of a major investigation into illegal iron ore exports facilitated through the Belekeri port in Karnataka’s Uttara Kannada district.
During the raids, ED officials successfully seized incriminating documents and froze assets amounting to ₹12.84 crore, which are considered proceeds of crime under the Prevention of Money Laundering Act (PMLA). Additionally, ₹42 lakh in cash was recovered, along with vital documents pertaining to immovable properties allegedly acquired through the illicit profits generated from this illegal iron ore trade, according to an official ED release.
The central agency launched this comprehensive investigation following multiple FIRs and chargesheets initially filed by the Central Bureau of Investigation (CBI). These earlier cases were initiated under specific directives from the Supreme Court of India, focusing on the illegal export of iron ore exceeding a quantity of 50,000 tonnes.
The ongoing inquiry has uncovered a sophisticated and wide-reaching network. This network is believed to involve a collusion between excavators, various traders, transporters, and exporters, all working together to systematically evade crucial royalty payments and other statutory taxes. A key aspect of this elaborate scheme was the frequent sourcing of iron ore from shell or fictitious entities, thereby creating a complex money laundering operation.
According to the ED, the involved exporters deliberately misrepresented the substantial illegal profits as legitimate business earnings. This was done to benefit themselves and their key management personnel. The Enforcement Directorate has officially identified several major entities and individuals believed to be primary beneficiaries of this illegal trade. These include MSPL Ltd. (linked to Narendra Kumar Baldota), Greentex Mining Industries Ltd. (linked to Ajay Kharwanda), Srinivasa Minerals Trading Co. (linked to Y. Srinivas Rao), Arshad Exports (linked to Md. Asghar Khan), SVM Nett Project Solutions Pvt. Ltd. (linked to Basavaraj B.), and Alphine Minmetals India Pvt. Ltd. (linked to Gagan Shukla).