For the first time in Maharashtra’s political history, the Vasantdada Sugar Institute (VSI), headed by NCP (Sharad Pawar) chief Sharad Pawar, will come under state government scrutiny over the utilisation of its funds. The institute, based in Pune, is engaged in research, development, and training for the state’s cooperative sugar industry.
VSI’s Funding Mechanism
The VSI’s operational funds are generated through a levy of ₹1 per metric tonne (MT) collected from sugar cooperatives across Maharashtra. These contributions are meant to support the institute’s ongoing research and training activities for the sugar sector.
Government Decision Triggers Reactions
According to sources, the decision to review the VSI’s funds was taken during a recent meeting of the ministers’ committee, chaired by Chief Minister Devendra Fadnavis, which oversees decisions related to the sugarcane crushing season.
The move follows dissent among sugar mills after the BJP-led Mahayuti government decided to impose an additional ₹5 per MT levy on crushed sugarcane to contribute to the Chief Minister’s Relief Fund.
Sugar Commissioner Clarifies
Reacting to the reports, Sugar Commissioner Sanjay Kolte confirmed that during the September 30 meeting, instructions were issued to form a committee to examine the utilisation of VSI’s funds. He, however, denied receiving any complaints regarding fund misuse.
Ajit Pawar Among VSI Trustees
Interestingly, Deputy Chief Minister Ajit Pawar a member of the VSI’s Board of Trustees was present during the meeting where the decision to review fund utilisation was made. Other key trustees include Dilip Walse Patil, Vijaysinh Mohite Patil, Jayant Patil, and Balasaheb Thorat.
Financial Records and Political Impact
According to data from the State Cooperation Department, VSI has received approximately ₹55 crore over the last five years through the cooperative contributions.
Never before has any state government verified the utilisation of VSI’s funds, despite its significant influence over Maharashtra’s sugar industry.
Political observers view this decision as a setback for Sharad Pawar, who serves as the lifetime chairman and head of VSI’s governing council.
CM Fadnavis Clarifies Intent
Speaking to reporters, Chief Minister Devendra Fadnavis stated that the move was not a probe, but a routine request for financial transparency.
“The notice only seeks financial information regarding the funds collected from sugar factories,” he clarified.
