Maharashtra: ED Targets MLA Rohit Pawar’s M/s Baramati Agro Ltd in PMLA Case, Seizes Rs. 50.20 Crore Assets
Mumbai, 8th March 2024: The Directorate of Enforcement (ED), Mumbai, has attached assets valued at Rs. 50.20 Crore of M/s Kannad Sahakari Sakhar Karkhana Limited (Kannad SSK), owned by M/s Baramati Agro Ltd under the provisions of the Prevention of Money Laundering (PMLA), 2002, in a case relating to the illegal sale of sugar mills by the Maharashtra State Co-operative Bank (MSCB). The attached assets consist of 161.30 acres of land, plant & machinery, and the building of the sugar unit in Kannad, Dist- Aurangabad.
ED initiated investigations based on an FIR registered by the Economic Offence Wing, Mumbai Police, under various sections of the IPC and the Prevention of Corruption Act. The FIR was registered in pursuance of the Order dated 22.08.2019 of the Hon’ble Bombay High Court. In the said FIR, it has been alleged that the SSKs were fraudulently sold by the then officials & Directors of MSCB at throw-away prices to their relatives/private persons without following the due procedure.
ED’s investigation revealed that to recover the outstanding loan of Rs. 80.56 Crore of M/s Kannad SSK Limited, MSCB took possession of all the assets of the said SSK on 13.07.2009 under the SARFAESI Act. On 30.08.2012, MSCB conducted the auction of Kannad SSK by fixing a very low reserve price based on a questionable valuation report. Apart from M/s Baramati Agro Ltd., 2 other parties entered into the bidding process. The bidder with the highest bid was technically disqualified on flimsy grounds, whereas the other bidder was already a close business associate of M/s Baramati Agro Ltd. with no financial capacity or experience of running a sugar unit.
Based on the investigation conducted and evidence collected under PMLA so far, it has been established that the acquisition of Kannad SSK by M/s Baramati Agro Ltd was illegal, and assets so acquired are proceeds of crime under section 2(i)(u) of the PMLA, 2002. Accordingly, a Provisional Attachment Order under PMLA was issued attaching all the assets of Kannad SSK acquired for Rs. 50.20 Crore.
Earlier in this case, 03 Provisional Attachment Orders have been issued where assets acquired at Rs. 121.47 crore have been attached. Further, 01 main Prosecution Complaint and 02 Supplementary Prosecution Complaints have also been filed before the Hon’ble Special PMLA Court, Mumbai, for the wrongful acquisition of 3 other SSKs. The Hon’ble Court has already taken cognizance of all the prosecution complaints filed in this case. Further investigation is in progress.
