Rohit Pawar summoned by Mumbai court in Maharashtra State Co-operative Bank scam

"Accused Rohit Pawar – director of Baramati Agro – and Ingwale – director of Hi-Tech Engineering Corporation – are prima facie found to have knowingly participated in this fraudulent acquisition," the court stated.

According to PTI, this marks the third chargesheet in the case, which names 17 accused, including firms.

Meanwhile, the legislator, from the Sharad Pawar-led NCP (SP), has been questioned by the ED twice previously in connection with this case.

The MSCB money laundering case originates from an August 2019 First Information Report (FIR) filed by the Mumbai Police’s Economic Offences Wing (EOW), reported PTI.

The scam pertains to an allegation that Sahakari Sakhar Karkhana (SSKs), or co-operative sugar factories, were fraudulently sold by the then officers and directors of the MSCB at "throwaway prices" to their relatives or private individuals without adhering to due procedure.

Furthermore, the agency has alleged that the MSCB, in an effort to recover an outstanding loan of Rs 80.56 crore from Kannad SSK Limited in Chhatrapati Sambhajinagar, took possession of all its assets in July 2009 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act.

The ED further alleged that the MSCB conducted an auction of Kannad SSK on 30 August 2012, by setting a "very low" reserve price based on a questionable valuation report, reported PTI.

"Apart from Baramati Agro Ltd, two other parties entered into the bidding process. The bidder with the highest bid was technically disqualified on a flimsy ground, whereas the other bidder was already a close business associate of Baramati Agro Ltd with no financial capacity or experience of running a sugar unit," it has said. Notably, the Kannad SSK is currently owned by Baramati Agro Ltd, a company belonging to Rohit Pawar.

After a thorough review of the records and documents, the court concluded that it prima facie appears the auction process of Kannad SSK "was marred by fraudulent practices."

The court also noted that the factory was revalued by Yes Bank at Rs 75 crore in March 2013, shortly after the auction, indicating undervaluation during the auction, reported PTI.

There appears to be a pre-arranged scheme between Baramati Agro Ltd and Hi-Tech Engineering Corporation Pvt Ltd to acquire the factory at a suppressed price, the court observed. Furthermore, it stated that based on the disclosed facts, there is sufficient material to infer that both Pawar and Ingwale, along with Baramati Agro, "were knowingly involved in acquisition, possession, and use of proceeds of crime" through means of a fraudulent auction.

"Thereby attracting the offence defined under relevant Prevention of Money Laundering Act (PMLA) provisions, which relates to direct or indirect attempts to indulge in or knowingly assist or be a party to the process or activity connected with the proceeds of crime," the court concluded.

Following these findings, it took cognisance of the chargesheet and issued summons to the accused.

(With inputs from PTI)