Karnataka HC Grants Bail to Congress MLA Satish Krishna Sail in Money Laundering Case
Karnataka HC Grants Bail to Congress MLA in Money Laundering Case

Karnataka High Court Grants Bail to Congress MLA Satish Krishna Sail in Money Laundering Case

The Karnataka High Court has granted bail to Congress MLA Satish Krishna Sail in a significant money laundering case, citing his fragile medical health as the primary reason. The case is linked to the alleged illegal export of iron ore from the Belekeri port in Ankola, with the court emphasizing that incarceration could jeopardize his health.

Bail Granted on Medical Grounds

A single-judge bench of Justice S Sunil Dutt Yadav allowed the petition filed by Sail, granting him conditional medical bail. The court stated, "Incarceration and treatment during incarceration may not be practical and would jeopardise the fragile medical health of the petitioner." As part of the bail conditions, Sail must execute a personal bond of Rs 5 lakh with one surety of a similar amount.

Background of the Case

The Enforcement Directorate (ED) had raided premises linked to Satish Krishna Sail in August 2025, following his conviction by a Bengaluru court under the Prevention of Corruption Act. According to the ED's investigation, Sail, in collusion with other business entities and Belekeri port officials, illegally exported iron ore particles weighing nearly 1.25 lakh metric tons between April 19, 2010, and June 10, 2010. The alleged total value of these illegal exports was approximately Rs 86.78 crore.

Legal Proceedings and Medical Arguments

Sail initially sought bail from the special court on medical grounds, but his application was rejected in November 2025, prompting him to approach the High Court. His legal team, led by Senior Advocate Sandesh J Chouta, argued for bail under the proviso added to Section 45(1) of the Prevention of Money Laundering Act (PMLA). This proviso, inserted in 2018, allows for bail for individuals who are sick or infirm, among other categories, if the Special Court directs.

Medical records presented in court revealed that Sail suffers from liver cirrhosis and multiple other ailments, with doctors advising a liver transplant. The ED had requested a fresh medical examination at the All India Institute of Medical Sciences (AIIMS) in New Delhi, which Sail underwent. AIIMS doctors opined that he requires weekly injections, must avoid crowded places, consume clean food and water, prevent infections, and undergo evaluation for a liver transplant on priority.

Court's Rationale and Conditions

In its order, the bench noted that Sail's medical needs indicate a requirement for a "fairly sterile environment," making a case for medical bail without addressing other contentions. The court exercised discretion under the PMLA Act's proviso to grant bail, taking a holistic view of the facts.

The court has imposed several conditions on Sail's bail:

  • He must file an appropriate intimation along with medical reports before the special court if he leaves the jurisdiction of the Karnataka High Court for medical treatment.
  • A report containing his medical condition and relevant parameters must be submitted to the special court every eight weeks.
  • He must file a report from his doctor within two weeks regarding the liver transplant procedure he needs to undergo.

The court has extended the interim bail granted earlier until the full order is made available, ensuring Sail's continued release under these strict conditions.