Mumbai: The special MP and MLA court on Friday issued summons to Rohit Pawar - grandnephew of Sharad Pawar and MLA from the Karjat-Jamkhed constituency along with his associate Rajendra Ingwale in connection with the third supplementary prosecution complaint filed by Enforcement Directorate in connection with Maharashtra State Cooperative Bank scam.
The Enforcement Directorate had recently submitted a third supplementary prosecution complaint naming Pawar, his firm M/s Baramati Agro Limited and Rajendra Ingwale for their involvement in alleged fraudulent acquisition of a Sakhar Kharkhana in Aurangabad. The special MP and MLA judge Satyanarayan R. Navander on Friday took cognisance of ED's prosecution complaint.
While issuing summons the court in its order said, "Accused Rohit Pawar, Director of Baramati Agro Ltd., and accused Rajendra Ingwale, Director of Hi-Tech Engineering Corporation Pvt. Ltd., are prima facie found to have knowingly participated in this fraudulent acquisition." Pawar and Ingwale have been asked to appear before the court by August 21.
ED's prosecution complaint is filed, when the Economic offences wing, which had probed the predicate offence into irregularities in MSC bank and auction of several sugar factories across the state.
ED in its complaint has claimed that Rohit who was director of Baramati Agro had acquired M/s. Kannad Sahkari Sakhar Kharkhana Ltd. The said transaction which was under scanner.
The court in its order has noted that, M/s. Kannad SSK Ltd, Kannad, District – Aurangabad, was set up in the year 1969, having 23000 share holders, who were sugarcane farmers, having shared capital of Rs 4.60 crores. It had a crushing capacity of 2500 ton per day before the unit was closed in the year 2007 – 08.
Since it the factory had defaulted in payment, it was taken over by the MSC bank on July 13, 2009. The Bank Executive Committee, by a resolution dated January 4, 2012, fixed the reserve price at Rs.51.06 crores based on a valuation report submitted by M/s. VGK Truman Consultancy Pvt. Ltd. The realizable and distress values were assessed at Rs.45.95 crores and Rs.43.40 crores, respectively.
It was claimed that three companies submitted their bids which were - M/s. Baramati Agro Ltd., Pune, M/s. Samrudhi Sugar Ltd., Aurangabad and M/s. Hi-Tech Engineering Corporation Pvt. Ltd., Pune.
ED claimed that Samrudhi Sugar, which was the highest bidder, raised objections alleging tampering of sealed tender forms. These objections were not addressed. Its bid was rejected on technical grounds, ED has claimed.
However, ED claimed that the probe revealed that, "Hi-Tech Engineering Corporation Pvt. Ltd. was in fact a shadow company or a proxy entity of M/s. Baramati Agro Ltd. A sum of Rs.5 crores was transferred from Baramati Agro Ltd. to Hi-Tech Engineering Corporation Pvt. Ltd. for payment of the Earnest Money Deposit (EMD)." Further, ED claimed that Fabricated correspondence between these two companies surfaced, which was in order to create an illusion of independence.
The court considering the evidence submitted by ED noted that, "According to the Investigating Officer, the auction process lacked transparency, was not impartial, and was manipulated to disqualify the higher bidder unjustifiably, ultimately favouring Baramati Agro Ltd. The intent appears dishonest and premeditated."
"After perusal of the record and accompanying documents, prima facie it emerges that the auction process of M/s. Kannad Sahkari Sakhar Kharkhana Ltd. was marred by fraudulent practices. Notably, the factory was revalued by Yes Bank at Rs.75 crores in March 2013, shortly after the auction, pointing towards undervaluation during auction. There appears to be a pre-arranged scheme between Baramati Agro Ltd. and Hi-Tech Engineering Corporation Pvt. Ltd. to acquire the factory at a suppressed price," the court further said.
It further added that "From the facts disclosed, there is sufficient material to infer that both these accused, along with M/s. Baramati Agro Ltd., were knowingly involved in acquisition, possession, and use of proceeds of crime by means of fraudulent auction"
