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Bengaluru, Oct 17 (IANS) The Bengaluru zonal office of the Enforcement Directorate (ED) conducted searches at 20 premises under provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Belekeri iron ore export case and attached assets worth Rs 12.80 crore, an official statement said on Friday.
Raids were conducted in Bengaluru’s Hospet and Gurugram on Thursday in connection with illegal iron ore export through Belekeri port in Karnataka’s Karwar district.
During the search operation, various incriminating documents related to illegal export of iron ore were found and seized from various premises.
Proceeds of crime amounting to Rs 12.84 crore have been attached as per Section 17(1-A) of PMLA.
Additionally, cash proceeds of crime amounting to Rs 42 lakh have also been seized.
Documents relating to immovable properties derived from money gained from illegal iron ore business have also been recovered.
The ED initiated the investigation on the basis of multiple FIRs and charge sheets filed by the Central Bureau of Investigation on the directions of the Supreme Court in cases of illegal export of iron ore in quantities of more than 50,000 metric tonnes from Belekeri port.
The modus operandi revealed a well-functioning chain of excavators, traders, transporters and exporters who worked with common objectives to defraud the state exchequer of its due royalty and other statutory taxes.
The illegally obtained iron ore was further exported through the network of these middlemen for the ultimate profit of exports.
In many cases, the iron ore was purchased from dummy or fictitious entities, making it a complex money laundering scheme.
The exporter has failed to submit complete documentation in respect of iron ore.
The illicit profits arising from this activity were used to benefit the exporting entities and their key management persons.
It is presented innocently and as part of normal business activity.
The following entities along with their key management persons, who were the major beneficiaries of illegal iron ore export through Belekeri port, have been covered: MSPL Limited (Narendra Kumar Baldota), Greentex Mining Industries Limited (Ajay Kharvanda), Srinivas Minerals Trading Company (Y Srinivas Rao), Arshad Exports (Md. Asghar Khan), SVM Net Project. Solutions Pvt. Ltd. Basavaraj B) and Alfin Minmetals India Pvt. Ltd. (Gagan Shukla).
Further investigation is ongoing.
–IANS
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