08 March,2024 05:11 PM IST | Mumbai | Faizan Khan
Representational Pic/File
The Enforcement Directorate (ED) in Mumbai has seized assets worth Rs 50.20 crore belonging to M/s Kannad Sahakari Sakhar Karkhana Limited (Kannad SSK), which is held by M/s Baramati Agro Ltd. The attachment relates to a dispute involving the Maharashtra State Co-operative Bank's alleged illicit selling of sugar mills, the ED said on Friday.
Baramati Agro Ltd. has connections to Rohit Pawar, Sharad Pawar's grandson, who was questioned by the ED twice earlier this year, official sources said.
Rohit Pawar reacted to the ED action and posted his comment on his X account.
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The attached assets include 161.30 acres of land, plant and machinery, and buildings of the sugar unit located in Kannad, Aurangabad. The ED initiated investigations based on an FIR registered by the Economic Offence Wing (EOW) of the Mumbai Police under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act.
The FIR was filed pursuant to the Bombay High Court order on August 22, 2019.
It was alleged that fraudulent sale of SSKs were made at throw-away prices to relatives and private individuals without following due procedure.
ED's investigation uncovered that to recover an outstanding loan of Rs 80.56 crore of M/s Kannad SSK Limited, MSCB took possession of all assets on July 13, 2009, under the SARFAESI Act.
On August 30, 2012, an auction of Kannad SSK was conducted by MSCB, fixing a very low reserve price based on a questionable valuation report. Apart from M/s Baramati Agro Ltd., two other parties participated in the bidding process.
The bidder with the highest bid was reportedly technically disqualified on flimsy grounds, while the other bidder was a close business associate of M/s Baramati Agro Ltd., lacking financial capacity and experience in running a sugar unit.
Based on the evidence collected under the PMLA, it has been established that the acquisition of Kannad SSK by M/s Baramati Agro Ltd. was illegal, and the assets acquired are considered proceeds of crime under Section 2(i)(u) of the PMLA, 2002. Consequently, a provisional attachment order under PMLA was issued, attaching all the assets of Kannad SSK acquired for Rs 50.20 crore.
Earlier, three provisional attachment orders were issued, attaching assets worth Rs 121.47 crore.
One main prosecution complaint and two supplementary prosecution complaints have been filed before the special PMLA court in Mumbai, regarding the wrongful acquisition of three other SSKs.
The court has already taken cognizance of all prosecution complaints filed in the case.
