MSC Bank scam: Sharad Pawar’s grandnephew Rohit appears before ED, questioned for nearly 12 hours

Rohit Pawar, the grandnephew of Indian politician Sharad Pawar, appeared before the Enforcement Directorate for questioning in a money laundering probe related to the Maharashtra State Cooperative Bank scam. He was grilled for 11.5 hours and has been asked to appear again on February 1.

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. He was grilled for around 11.5 hours.

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Rohit arrived at the ED office located in south Mumbai around 10.30am along with the party’s working president, Supriya Sule. He emerged out of the ED office at around 10.10 pm. He hugged a few party leaders and walked to the party office amid spirited sloganeering by party workers in his support, firecrackers, and music. The ED had summoned Rohit for questioning in the case and asked him appear before it between January 22 and 24. Rohit has been asked by the ED to appear before it on February 1 again. Rohit in his address to party supporters after his questioning said, “I was a businessman before I joined politics but I did my business properly and lawfully. I have been asked by the ED to come again on February 1 and I will come and cooperate in the probe.” He said, “ It will be a long fight, be prepared.”

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.