Karnataka Congress MLA Arrested by ED in Iron Ore Export Scandal

The Enforcement Directorate (ED) apprehended Satish Sail, a Congress MLA from Karnataka’s Karwar constituency, on Tuesday, September 9, 2025, in connection with a money laundering investigation, according to sources cited by NDTV Profit. The arrest followed an inquiry at the ED’s Bengaluru office, where Sail was questioned regarding allegations of illegal iron ore exports.

The case stems from a 2010 investigation by the Karnataka Lokayukta, which uncovered the unauthorized transport of approximately eight lakh tons of iron ore from Bellary to Belekeri port. Sail, aged 59, is accused of facilitating the illegal export of 1.25 lakh metric tonnes of iron ore fines between April and June 2010, despite a seizure order by the Forest Department in Ankola. The ED alleges that these activities, conducted through a company linked to Sail, resulted in exports valued at ₹86.78 crore.

Prior to the arrest, the ED conducted raids on August 13 and 14, 2025, targeting Sail’s properties in Karwar, Goa, Mumbai, and Delhi. These searches led to the seizure of ₹1.41 crore in cash from Sail’s residence, ₹27 lakh from the office of Sri Lal Mahal Ltd., and 6.75 kilograms of gold jewelry and bullion from the Sail family’s bank locker. Additionally, bank accounts holding ₹14.13 crore were frozen.

In October 2024, a special court for MPs and MLAs in Bengaluru convicted Sail in six related cases, sentencing him to seven years in prison and imposing a ₹44 crore fine. However, the Karnataka High Court suspended this conviction in December 2024, pending an appeal. Sail was produced before a special court on Tuesday, which granted the ED one-day custody, with further proceedings scheduled for Wednesday.

The arrest marks Sail as the third Congress MLA recently detained by central agencies, following Chitradurga MLA K.C. Veerendra and Dharwad Rural MLA Vinay Kulkarni.