Income Tax dept attaches properties allegedly linked to Ajit Pawar

The action was taken after the department allegedly discovered unaccounted income of about ₹184 crore during searches it carried out at 70 premises of two Mumbai-based real estate groups, individuals, and entities allegedly linked to Pawar.

The Income Tax department has provisionally attached properties in Maharashtra, Delhi, and Goa allegedly linked directly and indirectly to Maharashtra deputy chief minister Ajit Pawar, officials aware of the matter said on Tuesday.

After the searches, the department claimed there was a suspicious flow of funds allegedly involving an “influential family from Maharashtra,” without naming Pawar or his family. (HT File)

The action was taken after the department allegedly discovered unaccounted income of about ₹184 crore during searches it carried out at 70 premises of two Mumbai-based real estate groups, individuals, and entities allegedly linked to Pawar and his family in Mumbai, Pune, Baramati, Goa, and Jaipur last month. The department said incriminating documents, evidencing the unaccounted income were found during the raids.

The department is yet to issue any statement on the attachment but officials cited above said the action was taken under the Prohibition of the Benami Property Transactions Act. The attached assets include an office building at a prime location in Mumbai, a flat in a posh Delhi locality, a resort in Goa, agricultural land, and a sugar mill in Maharashtra, the officials said.

Funds obtained in a “dubious manner” were allegedly utilised for the acquisition of these properties, they added.

HT has reached out to Pawar for comments and the copy will be updated accordingly.

After the searches, the department claimed there was a suspicious flow of funds allegedly involving an “influential family from Maharashtra,” without naming Pawar or his family. The department officials, who spoke off the record, said the influential family was that of Pawar.

The department carried out searches including at the residences of Pawar’s three sisters and son, Parth. Pawar then called the agency’s action harassment. He alleged the department was being misused against his family for political reasons.

The agency said the searches led to the identification of transactions by business groups with a web of companies that, prima facie, appear to be suspicious. “A preliminary analysis of the flow of funds indicates that there has been an introduction of unaccounted funds in the group by way of various dubious methods like the introduction of bogus share premium, suspicious unsecured loans, receipt of unsubstantiated advance for certain services, collusive arbitration deals out of non-existent disputes, etc,” the agency said in its statement last month.

It added the value of assets allegedly acquired through funds obtained in a “dubious manner” was about ₹170 crore. The department claimed to have seized unaccounted cash of ₹2.13 crore and jewellery worth ₹4.32 crore during the five-day search operation.

Nationalist Congress Party (NCP) chief and Ajit Pawar’s uncle, Sharad Pawar, reacted strongly to the searches saying the action reeks of abuse of power. He linked it to the Bharatiya Janata Party’s (BJP) reaction to his position on the Lakhimpur Kheri violence. Sharad Pawar likened the violence to the Jallianwala Bagh massacre during the Indian national movement.

Union minister Ajay Mishra Teni’s son has been arrested in connection with the Lakhimpur Kheri violence that was triggered after a car ran over a group of protesting farmers.

NCP is part of the Shiv Sena-led government in Maharashtra, which has had frequent run-ins with the BJP-led central government over the alleged misuse of central agencies.

BJP leader Kirit Somaiya alleged Pawar and his family own the properties attached. “The properties include Jarandeshwar sugar factory worth ₹600 crore, an office owned by Parth Ajit Pawar in South Mumbai worth ₹25 crore, a flat in south Delhi worth ₹20 crore, and a resort named NIlaya in Goa worth ₹250 crore. The properties... are owned by Ajit Pawar, his wife Sunetra, his mother, his son, sisters, and Mohan Patil, son-in-law.”

Ajit Pawar last month refuted allegations that he and his family bought the sugar factories for paltry prices. “There are no irregularities involved in the purchase of any sugar factories. The factories were auctioned following all norms,” he said.