MSCB scam: ED raids Baramati Agro, company linked to NCP leader Sharad Pawar’s grand nephew

The Enforcement Directorate conducted searches in connection with a money laundering case involving the Maharashtra State Cooperative Bank. One of the properties searched belonged to NCP MLA Rohit Pawar's firm, which is under investigation for alleged diversion of funds. The probe is based on an FIR filed by the Mumbai police in 2019, alleging fraudulent sales of sugar mills. The ED suspects that the auction process for a cooperative sugar factory was rigged.

MUMBAI: The Enforcement Directorate (ED) on Friday conducted searches across six locations in connection with its probe into an alleged money laundering case connected to the fraud caused by Maharashtra State Cooperative Bank (MSCB). Of those properties searched include the premises of Baramati Agro Pvt Ltd, a firm linked to NCP MLA Rohit Pawar, grand nephew of Sharad Pawar. Rohit is the chief executive officer (CEO) of the firm.

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Rohit’s firm is under the scanner for alleged diversion of funds, agency sources said. Apart from his firm, the agency’s searches were also on the premises of two former directors of a now-defunct Hitech Engineering Corporation India Private Limited - Rajendra Ingawale and Sanjay Awate, and another firm, Samruddhi Sugar Private Limited.

Both these firms had, along with Agro Private Limited, participated in the auction of the Sambhaji Nagar-based cooperative sugar factory, Kannad SSK, which was purchased by Rohit Pawar’s firm. ED officials suspect that the auction process was allegedly rigged.

Rohit represents the Karjat-Jamkhed assembly constituency.

The ED probe in the case was based on a First Information Report (FIR) registered by Economic Offences Wing of the Mumbai police on August 26, 2019, alleging that sick sugar mills were fraudulently sold by the then officers and directors of MSCB at throw-away prices to their relatives / private persons without following the due procedure prescribed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

ED’s probe revealed that Kannad SSK, which had taken loans from the MSCB, was sold through auction by MSCB under the SARFAESI Act for around ₹50 crore in October-November 2012. The sugar mill was purchased by Baramatı Agro. From ED’s scrutiny of the bank accounts, it was allegedly found that in August 2012, Hitech Engineering had received an amount of ₹5 crore from Baramati Agro. Days later, the fund was allegedly used by Hitech Engineering for the purpose of Earnest Money Deposit to participate in the auction proceedings for the sale of Kannad SSK, according to ED.

ED’s probe further revealed that the funds utilised by Baramati Agro for the purchase of the sick sugar mill were originally sourced from cash credit accounts of various banks sanctioned for the purpose of working capital requirements. The ED is verifying allegations that the said funds were used for the purchase of Kannad SSK which, prima facie, appeared to be a diversion of funds obtained from banks, the sources said.

When contacted about the ED searches on his firm’s premises, NCP’s national Spokesperson Clyde Crasto said, “So, it is clear now that Rohit Pawar’s ‘Sangharsh Yatra’ has ‘hit a nerve’ and made the @BJP4India insecure. But it will not deter Rohit Pawar or stop him in his tracks. He will come out stronger. The justice system is supreme in our country and the truth will prevail.”

Rohit responded to the raids in a post on ‘X’ by uploading pictures of ideals from Maharashtra such as Chhatrapati Shivaji Maharaj, Dr Babasaheb Ambedkar among others saying they all have to be prepared for a struggle against injustice. “These are the faces of those having progressive thoughts who preserved and nurtured the religion of Maharashtra. They taught us to stand against injustice and thus the land of Maharashtra has a long history of struggle. As a Marathi, we all have to be prepared to ensure the religion of Maharashtra will be followed and sustained,” he said.

The 38-year-old is always considered as close to senior Pawar. The veteran leader is said to be guiding his grand-nephew on the nitty-gritties of public life. Rohit was very vocal against the ruling parties including his uncle and deputy chief minister Ajit Pawar. He carried out the 800-km foot-march between Pune and Nagpur as ‘Yuva Sangharsh Yatra’ in December over issues such as unemployment and rural distress. This is being seen as a reason that he is on target of central investigation agencies.