7-year jail, Rs 44 crore fine for Karnataka Congress MLA Satish Sail, 6 others in ore scam

Bengaluru: A special court for the trial of elected representatives on Saturday sentenced Congress MLA Satish Sail and six others to seven years of rigorous imprisonment and slapped hefty fines in the cases related to the theft and export of seized iron ore through the Belekeri port in Uttara Kannada district during 2009-2010.

Special Court Judge Santhosh Gajanan Bhat sentenced the Karwar MLA and six others for criminal conspiracy, theft of seized iron ore and export of the same without any valid documents.

The court had earlier found the accused guilty of charges in the six cases probed by the CBI.

The other convicts were then deputy conservator of ports Mahesh Biliya, Kharadpudi Mahesh and Swastika Nagaraj, who were illegal transporters of iron ore, Premchand Garag, owner of Lal Mahal Exports, Govindaraju and Chethan sha, directors of another company.

The court found the accused guilty of offences under IPC sections 120 (B), 379 and 420. Biliya has also been convicted under sections 13 (1) (C), 13 (1) (D) of the Prevention of Corruption Act and IPC section 409. The court has slapped a cumulative fine of Rs 44. 11 crore on all the seven accused. The amount shall be payable to the state government.

Biliya, who is accused number one in all six cases, has been directed to pay an additional fine of Rs 7.20 lakh.

Background

In 2010, forest officials seized iron ore at Belekeri port after illegal mining cases were reported in the Ballari district.

Later in the same year, it was found that a large portion of the seized iron ore was stolen and exported. Based on the Supreme Court's order, the CBI took over the investigation into the theft of the mineral ore.

The CBI case was that Sri Mallikarjuna Shipping Pvt (SMSPL), owned by Satish Sail, and Lal Mahal Exports of Premchand Garag purchased the seized material through various agencies.

SMSPL and Lal Mahal had approached the high court seeking permission to lift the export restrictions on the particular iron ore. The court passed an order directing the petitioner companies to export the mineral only after submitting valid documents. The CBI chargesheet stated that SMSPL and Lal Mahal stole from the seized iron ore stock in connivance with port conservator Mahesh Biliya and exported it to China without having valid documents.

Senior Public Prosecutor KS Hema and Shivananda Perla appeared on behalf of the CBI.