MSC Bank scam: Sharad Pawar’s grandnephew Rohit appears before ED for questioning

The ED probe is based on a first information report (FIR) registered by Mumbai police’s Economic Offence Wing (EOW) on August 26, 2019.

Mumbai: Nationalist Congress Party (NCP) legislator and party chief Sharad Pawar’s grandnephew Rohit Pawar appeared before the Enforcement Directorate (ED) in Mumbai on Wednesday for questioning in the money laundering probe related to the Maharashtra State Cooperative Bank (MSCB) scam.

Enforcement Directorate (Representative Photo)

Rohit arrived at the ED office located in south Mumbai around 10.30am along with the party’s working president, Supriya Sule. The ED had summoned Rohit for questioning in the case and asked him appear before it between January 22 and 24.

“I don’t fear any enquiry and am ready to face ED”, said Rohit had said before entering the ED office.

Sule said that around 95% of ED enquiries were held against the leaders belonging to the opposition party.

A large number of NCP workers gathered outside the party’s office in south Mumbai, which is only a few hundred metres away from the ED office, to show their support. Sharad also met Rohit at the party office and gifted him a copy of a book written by his mentor and state’s first chief minister Y B Chavan., while party MP Sule gave him a copy of the Constitution of India.

NCP’s allies Shiv Sena (UBT) and Congress also showed support to Rohit.

Shiv Sena (UBT) leader Aaditya Thackeray said that it is a situation like Pakistan where opposition parties are harassed by a dictatorial government.

The ED is probing a case related to the alleged rigged auction of an Aurangabad-based sick sugar mill in 2012 and suspected diversion of bank funds allegedly by the Baramati Agro Private Limited (BAPL), a firm headed by Rohit, and two other firms.

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, according to the ED officials known to the matter.

Rohit, who represents the Karjat-Jamkhed assembly constituency, is currently the chief executive officer at BAPL.

According to the ED, the BAPL, along with now-defunct Hitech Engineering Corporation India Pvt Ltd, and Samruddhi Sugar Pvt Ltd had participated in the auction of the Aurangabad-based cooperative sugar factory, Kannad SSK, in October-November 2012. Kannad SSK was eventually purchased by BAPL allegedly for around Rs.50 crore in the auction.

“ED is also scanning whether BAPL used such funds to purchase the sugar mill that was part of bank loans for working capital purposes,” an official aware of the matter said.

The ED probe is based on a first information report (FIR) registered by Mumbai police’s Economic Offence Wing (EOW) on August 26, 2019.

According to the ED, Hitech Engineering had allegedly received an amount of Rs.5 crore from Baramati Agro, which it used days later as EMD to participate in the auction of Kannad SSK. Kannad SSK, which had taken loans from the MSCB, was sold through the auction by the bank under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act.

The EOW’s case was registered in pursuance of an August 22, 2019, order of the Bombay high court. The EOW had filed a closure report in the competent court in its probe, which is pending.

The FIR alleged that sick sugar mills were fraudulently sold by the then officials and directors of MSCB at throw-away prices to their relatives/private persons without following the due procedure prescribed under the SARFAESI Act.

Speaking to the media persons out of the ED office, Sule said the agency’s investigation must be fair and transparent. “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.

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.