MSC Bank Scam: Names of Maharashtra ex-finance minister Ajit Pawar, wife do not figure in ED chargesheet

ED officials refused to comment on the matter, but hinted that an investigation agency can always file a supplementary chargesheet and name other accused in the case after their roles are established with evidence.

Ajit Pawar was never questioned by the ED in the case.

ED’s money laundering case is based on the August 2019 First Information Report (FIR) of the Mumbai police’s Economic Offence Wing (EOW) which had registered a cheating, forgery and corruption case after the Bombay High Court’s direction. As per the allegations made in the FIR, the then officials and directors of MSCB had fraudulently sold cooperative sugar mills at throw-away prices to their relatives and private persons without following the due procedure prescribed under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act).

However, later, EOW had closed the case claiming it to be a civil matter. Later, the complainant in the case moved the High Court alleging that the closure report filed by EOW giving a clean chit to the then finance minister Ajit Pawar and 75 directors of the district banks was questionable as it was based on the statement of managing director Ajit Deshmukh, who was also named in the alleged scam.

ED’s investigation has revealed that MSCB conducted an auction of Jarandeshwar Sahakari Sakhar Karkhana (SSK), a cooperative sugar factory in Satara district, in the year 2010 at undervalued price and without following due procedure.

The cooperative sugar factory was purchased by Guru Commodity Services Pvt Ltd (a dummy company) and was immediately leased to Jarandeshwar Sugar Mills, which is presently operating the Jarandeshwar SSK. The majority shares of Jarandeshwar Sugar Mills are held by Sparkling Soil, which is related to Ajit Pawar and Sunetra.

“The major part of the funds utilised towards the purchase of the said cooperative was received from Jarandeshwar Sugar Mills, which received the same from Sparkling Soil, a company related to Ajit Pawar and his wife,” ED had earlier stated in a statement.

The anti-money laundering agency further said that Guru Commodity Services Pvt. Ltd (a dummy company) was used to acquire the said SSK. The sugar mill was actually controlled and run by Jarandeshwar Sugar Mills.

The central agency previously maintained that the cooperative sugar mill has been used as a vehicle by Jarandeshwar Sugar Mills for obtaining loans to the tune of Rs 700 crore (approximate) from the Pune District central cooperative bank and others during the period from 2010 till date. Thus the assets held in the name of Guru Commodity Services Pvt Ltd (leased to Jarandeshwar Sugar Mills) of Jarandeshwar SSK being proceeds of crime, it said.

This was also the reason why these properties linked to suspect companies were attached under Prevention of Money Laundering Act (PMLA).

The ED in July 2021 had attached the properties including land, building and structure and plant and machinery of Jarandeshwar SSK (cooperative sugar mills) situated at Chimangaon, Koregaon, Satara, worth Rs 65.75 crore (as per the purchase price of the year 2010) under the provisions of the PMLA, 2002 in MSC Bank scam.

These assets are currently held in the name of Guru Commodity Services and leased to Jarandeshwar Sugar Mills.