PMLA court issues process against three, including entity linked to Pawar

The special Prevention of Money Laundering court in Mumbai has issued process against representatives of M/s Guru Commodity Services Pvt Ltd, a firm owned by Omkar Developers, its chartered accountant Yogesh Bagrecha, and Jarandeshwar Sugar Mills Pvt Ltd in connection with a money-laundering case related to financial irregularities at the Maharashtra State Cooperative Bank. The case involves allegations of acquiring assets at a throwaway price and undervalued auctions. Deputy Chief Minister Ajit Pawar and his wife were earlier directors in Jarandeshwar Sugar Mills.

MUMBAI: The special Prevention of Money Laundering (PMLA) court on Wednesday issued process against representatives of M/s Guru Commodity Services Pvt Ltd, a firm owned by Omkar Developers, its chartered accountant Yogesh Bagrecha and Jarandeshwar Sugar Mills Pvt Ltd in connection with a money-laundering case arising out of the alleged financial irregularities at the Maharashtra State Cooperative (MSC) Bank. Deputy chief minister Ajit Pawar and his wife Sunetra were earlier directors in Jarandeshwar Sugar Mills.

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“The assets of M/s Jarandeshwar SSK (Sahkari Sakhar Karkhana) Ltd (A3) were acquired by the close associates of Mr Ajit Pawar at a throwaway price,” said special judge M G Deshpande while taking cognisance of the chargesheet filed by the Enforcement Directorate (ED) in the money-laundering case.

The ED had in March this year filed a prosecution complaint against M/s Guru Commodity Services, Yogesh Bagrecha and Jarandeshwar Sugar Mill Pvt Ltd, highlighting irregularities in the auction of Jarandeshwar Sahakari Sakhar Kharkana (SSK), Pune. The co-operative sugar factory was allegedly sold off by the MSC Bank at a throwaway price.

The ED’s money-laundering case is based on an FIR registered by the Economic Offences Wing of the Mumbai police in 2019 against several directors of the MSC Bank, directors of some District Central Cooperative Banks (DCCBs) and others.

The court, while taking cognisance of the ED’s prosecution complaint, observed: “Till date, M/s Jarandeshwar Sugar Mills Pvt Ltd has availed of loans of more than ₹826 crore by mortgaging the properties of M/s Jarandeshwar SSK Ltd, owned by M/s Guru Commodity Services Pvt Ltd as collateral, and valuation thereof was arrived at ₹103 crore only. A loan of ₹826 crore given by Pune DCCB and other banks for a mortgaged property of M/s Jarandeshwar SSK Ltd goes to prima-facie show that the assets of M/s Jarandeshwar SSK Ltd were acquired by the close associates of Ajit Pawar at a throwaway price.”

As per the complaint filed by the ED, Jarandeshwar SSK started operations in 1999-2000. The owners had taken loans from MSC Bank, out of which ₹78.90 crore remained outstanding, on the basis of which its account was treated as a non-performing asset and in July 2010, the entity was taken over by the bank.

The bank sought its valuation from two firms, which valued it at ₹41.23 crore and ₹45.77 crore respectively. However, when Jarandeshwar SSK called for a valuation from a government-authorised valuer, he pegged its worth at ₹103.31 crore. The ED claimed that the bank put the firm on auction at a very undervalued base rate of ₹40 crore.

The ED also said that Bagrecha had claimed that the Omkar Group had purchased Guru Commodity in the year 2010 only to participate in the auction process of Jarandeshwar SSK. The auction was held on September 27, 2010, where Guru Commodity was declared the winning bidder. The agency claimed that the bank held an auction in such a way that only Guru Commodity Services Pvt Ltd could win the bid. The agency further alleged that Guru Commodity participated in the auction only as a proxy for Jarandeshwar Sugar Mills Pvt Ltd.

The board of directors of MSC Bank passed a resolution and approved the sale of the sugar factory to Guru Commodity on October 12, 2010. After the company made the full payment on November 25, 2010, it was issued a sale certificate by the bank and on the same day, the factory was given on lease to Jarandeshwar Sugar Mills Ltd, a fully owned subsidiary of Sparkling Soil Ltd.

According to the ED, four companies that had shareholdings in Sparkling Soil were identified as M/s Non Con Energy (I) Pvt Ltd, Firepower Marketing (I) Pvt Ltd, Shivraj Agro Estate Pvt Ltd and Sujay Agro Estate Pvt Ltd. Ajit Pawar and his wife Sunetra were once directors in three of the firms.

“M/s Jarandeshwar Sugar Mills Pvt Ltd was incorporated in November 2010. Funds which were utilised by M/s Jarandeshwar Sugar Mills Pvt Ltd for making payment to M/s Guru Commodity Services Pvt. Ltd, were entirely sourced from M/s Sparkling Soil Pvt Ltd ie M/s Jay Agrotech Pvt Ltd, which is also holding 99.5% shares of M/s Jarandeshwar Sugar Mills Pvt Ltd,” said the court. “All these four companies are companies of the same group having the same / common directors.”

“Though the assets of M/s Jarandeshwar SSK Ltd were shown as purchased by M/s Guru Commodity Services Pvt Ltd, the same was given on a lease basis immediately to M/s Jarandeshwar Sugar Mills Pvt Ltd at a nominal rate. Within a month thereafter, M/s Jarandeshwar Sugar Mills Pvt Ltd mortgaged the property of the said M/s Jarandeshwar SSK Ltd and availed of loans to the tune of ₹89 crore from Pune DCCB Ltd and M/s Guru Commodity Services Pvt Ltd has given its consent to the Pune DCCB Ltd for security of the said loan. Accordingly, it was sanctioned in the name of sugar stock to M/s Jarandeshwar Sugar Mills Pvt Ltd whereas there was no sugar stock available with the sugar factory at the time of sanctioning of loan,” the court noted.