Sharad Pawar's grandnephew appears before ED in MSCB case
What's the story
Nationalist Congress Party (NCP) leader Rohit Pawar—who is also the grand-nephew of party chief Sharad Pawar—appeared before the Enforcement Directorate (ED) in Mumbai on Wednesday.
He was summoned for questioning in the money laundering probe related to the Maharashtra State Cooperative Bank (MSCB) scam.
Rohit arrived at the ED office at around 10:30 am, accompanied by senior NCP members including Working President Supriya Sule.
Under lens
ED scanner on BAPL, two other firms
The Enforcement Directorate (ED) is probing Baramati Agro Private Limited (BAPL), headed by Rohit, and two other firms.
This investigation is related to the alleged rigged auction of an Aurangabad-based sick sugar mill in 2012 and suspected diversion of bank funds.
"The BAPL is accused of funding an accused co-bidder for complying with the requirement of submitting an Earnest Money Deposit of Rs.5 crore to participate in the auction," ED officials said.
Enforcement Directorate's investigation
ED probe based on 2019 FIR
The ED states that Baramati Agro Private Limited (BAPL), Hitech Engineering Corporation India Pvt Ltd (now closed), and Samruddhi Sugar Pvt Ltd took part in an auction for the Kannad SSK sugar factory in 2012.
BAPL reportedly acquired Kannad SSK for approximately Rs.50 crore in the auction.
The ED probe is based on an FIR filed by Mumbai police's Economic Offence Wing on August 26, 2019.
Norms flouted
What are ED's charges?
According to the ED, Hitech Engineering reportedly received Rs.5 crore from Baramati Agro, using it as EMD a few days later to bid in the auction for Kannad SSK.
The sugar factory, which had loans from MSCB, was auctioned by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
The FIR accuses MSCB officials of selling sick sugar mills at low prices to relatives/private individuals, violating SARFAESI Act procedures.
Details
We will cooperate with probe: Sule
In a statement to media outside the ED office, Sule said: "I have full faith in the agency and I am sure they will hear Rohit's side as well. We will cooperate with all the agencies because we have nothing to hide," she said.
She also said that the agency's investigation should be fair and transparent.
The senior NCP leader also hit out at the Bharatiya Janata Party (BJP), saying that it uses central agencies to target rivals before elections
Intervention petition filed
ED reopened 2020 case
The initial case was closed in 2020 but the ED filed an intervention petition and began its inquiry.
On January 5, ED conducted searches at around six locations in cities including Pune, Pimpri Chinchwad, Aurangabad and Baramati in the state on the premises of persons associated with BAPL, Hitech Engineering Corporation India Private Limited and Samruddhi Sugar Private Limited.