Ajit Pawar’s aides may have got sugar mill assets at throwaway price: Court

Taking cognisance of a chargesheet filed by the Enforcement Directorate, a special court in Mumbai said close associates of Maharashtra Deputy Chief Minister Ajit Pawar seem to have acquired assets of a sugar cooperative “at a throwaway price”.The chargesheet, filed by the ED during Ajit Pawar's time in Opposition, highlights one sugar factory that allegedly obtained illegitimate loans from cooperative banks.

The scheme involved showcasing the sugar mills as non-performing assets, which were subsequently auctioned off to close aides of politicians. It is alleged that over 50 sugar mills were mortgaged and later auctioned in this manner.There are cogent, sound and prima-facie sufficient grounds to direct issuance of process," said a special court in Mumbai while summoning companies Guru Commodity Services Pvt Ltd and Jarandeshwar Sugar Mills Pvt Ltd and chartered accountant Yogesh Bagrecha.

The investigation by the ED revealed that Jarandeshwar SSK, located in Satara, was auctioned in 2010 by the MSCB under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The factory operated successfully from 1999 to 2000 and between 2002 and 2004. However, its financial condition deteriorated, leading to its lease to Guru Commodity Services. During this period, Jarandeshwar SSK obtained loans from the MSCB. The court noted that there is an outstanding loan of Rs 487 crore and a total loan of Rs 826 crore against Jarandeshwar SSK, while its valuation stood at only Rs 41.23 crore and Rs 45.77 crore, as per the MSCB.

The court examined the shareholders' list provided by the ED for each of the companies involved in the scam and observed that all four companies are group companies with the same directors. Although the assets of Jarandeshwar were shown as purchased by Guru Commodity Services, the factory was immediately given on a lease basis to Jarandeshwar at a nominal rate. Shortly thereafter, Jarandeshwar mortgaged some of its properties and obtained loans from the Pune District Cooperative Bank, with the consent of Guru Commodity Services acting as security for the loan.