The Directorate of Enforcement (ED) on Thursday carried out extensive search operations across 20 locations in Bengaluru, Hospet, and Gurugram (Haryana) in connection with a massive illegal iron ore export racket linked to the Belekeri Port in Uttara Kannada district, Karnataka.
According to the agency, the searches were part of an ongoing probe into the unlawful export of nearly 50,000 tonnes of iron ore and the subsequent laundering of proceeds derived from these illegal activities.
During the operations, the ED seized ₹42 lakh in cash, a large number of incriminating documents, and froze assets worth ₹12.8 crore, which it identified as the proceeds of crime. The agency also recovered property-related documents showing that immovable assets were acquired using illicit funds generated from the illegal exports.
Investigation Origin and Findings
The investigation stems from multiple FIRs and chargesheets filed by the Central Bureau of Investigation (CBI), following directions issued by the Supreme Court of India in earlier cases concerning illegal mining and export of iron ore from Karnataka.
According to the ED’s statement, the probe uncovered a well-organised network of excavators, traders, transporters, and exporters who allegedly colluded to siphon off iron ore without paying royalties and statutory taxes due to the state government.
“The illegally extracted iron ore was routed through a chain of intermediaries and ultimately exported for the benefit of various export companies,” the agency said. “In several cases, the ore was shown to have been procured from dummy or fictitious entities, forming a complex web of transactions to disguise the illicit origins of the goods and funds.”
The exporters, the ED noted, had failed to furnish complete documentation for the iron ore shipments, while profits earned from these illegal exports were laundered and presented as legitimate business income.
Key Entities Under the Scanner
The agency identified several companies and individuals who allegedly benefited from the illegal operations. These include:
- MSPL Ltd — led by Narendra Kumar Baldota
- Greentex Mining Industries Ltd — headed by Ajay Kharwanda
- Srinivasa Minerals Trading Co — owned by Y. Srinivas Rao
- Arshad Exports — managed by Mohammad Asghar Khan
- SVM Nett Project Solutions Pvt Ltd — operated by Basavaraj B
- Alphine Minmetals India Pvt Ltd — associated with Gagan Shukla
All these entities, according to the ED, were among the major beneficiaries of the illegal iron ore exports and used the proceeds to acquire properties and assets, projecting them as legitimate earnings from lawful business activities.
