MSC Bank scam: ED attaches 4.6-acre land of minister Prajakt Tanpure

Nationalist Congress Party leader Tanpure was questioned by the ED in December 2021 in connection with the case.

The Enforcement Directorate (ED) has attached 90 acres of land worth ₹13.41 crore, belonging to Ram Ganesh Gadkari Sahkari Sakhar Karkhana (SSK), which was already auctioned by the Maharashtra State Co-operative (MSC) Bank, causing losses to the bank. It has also attached 4.6 acres of non-agricultural land in Ahmednagar, worth around ₹7.6 crore, belonging to Prajakt Tanpure, minister of state for urban development.

Earlier in July 2021, the ED had attached properties worth ₹65.75 crore (as per the purchase price in 2010) belonging to Jarandeshwar Sahkari Sakhar Karkhana, situated at Chimangaon in Satara district, in connection with the MSC Bank case. (Anshuman Poyrekar/HT Photo)

Nationalist Congress Party leader Tanpure was questioned by the ED in December 2021 in connection with the case.

The ED on Monday said the 90 acres held in the name of Takshshila Securities Private Limited and the two pieces of non-agricultural land admeasuring 4.6 acres, belonging to Tanpure, were attached under provisions of the Prevention of Money Laundering Act.

The ED’s case is based on an FIR in August 2019 registered by the Economic Offences Wing of the Mumbai police, pursuant to a Bombay high court order of August 22, that year. It is alleged in the FIR that cooperative sugar factories were fraudulently sold by then officials and directors of MSC Bank at throwaway prices to the entities owned by their relatives, without following due procedure. The EOW has, however, filed a report before a competent court, which is pending.

The ED’s investigation revealed that MSC Bank undertook auction of Ram Ganesh Gadkari SSK in 2007 at an undervalued price, and without following due process, the SSK was sold to Prasad Sugar and Allied Agro Products Ltd., a firm of Tanpure, for ₹12.95 crore against the reserve price of ₹26.32 crore.

The investigation also revealed that even though Prasad Sugar was the sole bidder, in order to project the bid process as competitive, a signature of some “second bidder” was taken by MSC Bank officials on bid documents.

“This ‘second bidder’ did not deposit the required earnest money deposit amount and was found to be a proxy of Prasad Sugar. Though the auction was conducted in 2007, Prasad Sugar completed the payment of sale amount in 2010 against the statutory condition of completing it within 52 days (maximum),” the ED said.

Money trail investigation revealed that the funds utilised by Prasad Sugar for payment was majorly received from other parties without any rationale.

“It is also revealed that part of funds to purchase the SSK also came from Ranjit Deshmukh, who served as chairman of Ram Ganesh Gadkari SSK from 1995 to 2004. Prasad Sugar is a family concern of Prasad Tanpure, who was one of the prominent members of board of directors of MSC Bank between August 2004 and March 2010,” the ED said in a statement released on Monday.

After taking possession of the entire assets of the SSK, the plant and machinery were dismantled, transported and installed in a new location at Vambori in Ahmednagar district. The land and the structure were sold to Takshshila Securities in 2011. These assets have now been provisionally attached by the ED.

In November 2021, the Central agency also conducted searches on various premises in Aurangabad. One of the searched places included a premise linked to a Shiv Sena leader.

Earlier in July 2021, the ED had attached properties worth ₹65.75 crore (as per the purchase price in 2010) belonging to Jarandeshwar Sahkari Sakhar Karkhana, situated at Chimangaon in Satara district, in connection with the MSC Bank case.