In connection with a money laundering case, the Enforcement Directorate (ED) has seized assets worth Rs 50.20 crore belonging to a sugar mill owned by NCP (Sharad Pawar faction) MLA Rohit Pawar's Baramati Agro. This seizure includes various assets, such as 161.30 acres of land, plant, and machinery, and the building of the sugar unit situated in Kannad in Aurangabad. Rohit Pawar has been questioned twice by the probe agency regarding this matter.
Under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Enforcement Directorate attached the assets of Kannad Sahakari Sakhar Karkhana Limited (Kannad SSK), which is owned by Baramati Agro. This action is related to the Maharashtra State Cooperative Bank (MSCB) scam, where the probe agency alleges that the acquisition of Kannad SSK by Baramati Agro Ltd was illegal, rendering the acquired assets as "proceeds of crime" under the PMLA.
The investigation was initiated following an FIR filed by the Economic Offences Wing of Mumbai Police in August 2019, citing various sections of the IPC and Prevention of Corruption Act. The FIR revealed fraudulent sales of SSKs by MSCB officials and directors at undervalued prices to relatives or private individuals without adhering to proper procedures.
According to the agency, MSCB took possession of all assets of Kannad SSK Limited in July 2009 under the SARFAESI Act to recover an outstanding loan of Rs 80.56 crore. Subsequently, MSCB conducted an auction of Kannad SSK, with Baramati Agro and two other parties participating in the bidding process.
The probe agency alleges that the auction was manipulated, disqualifying the highest bidder on flimsy grounds while favoring another bidder closely associated with Baramati Agro, lacking the financial capacity or experience to run sugar units.
Consequently, the acquisition of Kannad SSK by Baramati Agro was deemed illegal by the probe agency, leading to the attachment of the assets of Kannad SSK. Earlier, three provisional orders were issued attaching assets worth Rs 121.47 crore in connection with the case.
The investigation remains ongoing as authorities delve deeper into the complexities surrounding the alleged money laundering activities and the irregular acquisition of assets.
