Bengaluru: The Directorate of Enforcement (ED), Bangalore Zonal Office, has conducted extensive search operations under the Prevention of Money Laundering Act (PMLA), 2002, on October 16, 2025, across 20 premises in Bengaluru, Hospet, and Gurugram in connection with the illegal export of iron ore through Belekeri Port in Karnataka.
According to the ED, the raids led to the seizure of various incriminating documents and unaccounted assets linked to the illegal iron ore trade. The proceeds of crime worth ₹12.84 crore have been frozen under Section 17(1-A) of the PMLA, and an additional ₹42 lakh in cash has been seized. The agency also confirmed the attachment of immovable properties allegedly acquired from illegal mining proceeds.
The investigation stems from multiple FIRs and charge sheets filed by the CBI following directions of the Supreme Court of India in cases related to illegal export of iron ore from Belekeri Port, involving quantities exceeding 50,000 metric tonnes (MT).
Complex Network of Collusion Exposed
The ED revealed that a well-organised chain of excavators, traders, transporters, and exporters operated in collusion to defraud the exchequer by evading royalty and statutory taxes. The illegally mined iron ore was routed through a network of intermediaries and later exported using dummy or fictitious entities, forming part of an elaborate money laundering scheme.
The exporters, the agency said, failed to furnish complete documentation for the exported iron ore. The illegal profits were allegedly utilised to benefit exporting firms and their key management, and were shown as legitimate business income to mask the source of funds.
Entities Under ED Scanner
The following companies and their key management personnel have been named as major beneficiaries of the illegal iron ore exports via Belekeri Port:
- M/s MSPL Ltd (Narendra Kumar Baldota)
- M/s Greentex Mining Industries Ltd (Ajay Kharwanda)
- M/s Srinivasa Minerals Trading Co (Y. Srinivas Rao)
- M/s Arshad Exports (Md. Asghar Khan)
- M/s SVM Net Project Solutions Pvt. Ltd (Basavaraj B.)
- M/s Alpine Minmetals India Pvt. Ltd (Gagan Shukla)
The ED stated that further investigation is underway to trace the complete money trail and identify the end beneficiaries of the illegal mining and export network.
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