Bengaluru: The Enforcement Directorate (ED)’s Bengaluru Zonal Office has conducted search operations under the provisions of Prevention of Money Laundering Act (PMLA), 2002, at 20 premises located and attached properties worth Rs 12.80 crore in connection with Belekeri iron ore export case, the official statement said on Friday.
The raids were conducted in Bengaluru on Thursday in Hospet and Gurugram in connection with illegal iron ore export through Belekeri Port in Karwar district of Karnataka.
During the search operation, various incriminating documents related to illegal export of iron ore has been found and seized from the various premises.
The proceeds of crime to the tune of Rs 12.84 crore have been attached as per Section 17(1-A) of the PMLA.
Additionally, proceeds of crime to the tune of Rs 42 lakh in cash has also been seized.
The documents with respect to the immovable properties obtained out of money generated from business in illegal iron ore has also been recovered.
The ED initiated investigation on the basis of multiple FIRs registered and charge-sheets filed by the Central Bureau of Investigation on the directions of the Supreme Court, in the cases of illegal export of iron ore from the Belekeri Port, for quantity exceeding 50,000 MT.
The modus operandi revealed a well-oiled chain of excavator, trader, transporter and exporter, who worked with common objectives in complete collusion with each other to cheat the state exchequer of its due royalty and other statutory taxes.
The illegally obtained iron ore was further exported through a network of these intermediaries for the ultimate benefit of the exports.
In many cases, iron ore were procured from the dummy or fictitious entities making it a complex money laundering scheme.
The exporters have failed to submit complete documents with respect of exported iron ore.
The illegal profit generated out of this activity was used for the benefits of the exporting entities and their key management persons.
It has been projected as untainted and part of general business activity.
The following entities along with their key management persons, who were major beneficiaries of the illegal iron ore export through Belekeri port, has been covered: MSPL Ltd. (Narendra Kumar Baldota), Greentex Mining Industries Ltd (Ajay Kharwanda), Srinivasa Minerals Trading Co (Y Srinivas Rao), Arshad Exports (Md. Asghar Khan), SVM Nett Project Solutions Pvt. Ltd Basavaraj B) and Alphine Minmetals India Private Ltd. (Gagan Shukla).
Further investigation is under progress.
(IANS)
