MSCB money laundering case: Ajit Pawar-linked company 'channelled illicit funds', says ED chargesheet

MUMBAI: Jarandeshwar Sugar Mills Pvt Ltd linked to NCP leader and ex-deputy CM Ajit Pawar "has indulged itself in criminal activities by conspiracy, channelling of illicit funds," according to the chargesheet filed by the Enforcement Directorate in the Maharashtra State Co-operative Bank (MSCB) money laundering case pertaining to sale of Satara's Jarandeshwar mill in an auction at a throwaway price.
The ED further said the company is thus "possessing and using the proceeds of crime by carrying out criminal activities and (is) involved in money laundering."

TOI was first to report on Wednesday that ED had not named Ajit Pawar and his wife in the chargesheet. The chargesheet said, "The investigation into specific roles and activities of various other persons suspected to be involved in the offence of money laundering is likely to take more time." The ED chargsheet said Jarandeshwar Co-operative Sugar Mill Ltd became operational in the year 1999-2000 and during its operational period, it obtained loans from MSCB from time to time, when Ajit Pawar was on the bank's board of directors. The account became NPA and a total amount of Rs 78.9 crore remained outstanding. MSCB sold the mill to Guru Commodity Services in 2010 through an auction. A company with the same name, Jarandeshwar Sugar Mills Pvt Ltd, incorporated in November 2010, which took the mill on lease from Guru Commodity Services, was controlled by a holding company where Ajit Pawar was a former director.
After the auction, a Rs 826 crore loan was availed in the name of the mill from Pune District Central Co-operative Bank (headed by Ajit Pawar) and other banks, but the money was diverted for various other purposes.
Guru Commodity Services is the company of Mumbai-based builder Omkar Group, which gave the mill on lease to Jarandeshwar Sugar Mills Pvt Ltd. The private limited company is owned by Sparkling Soil Pvt Ltd. Four companies -- Non-Con Energies Pvt Ltd, Firepower Energies Pvt Ltd, Shivraj Agro Estates Pvt Ltd and Sujay Agro Estates Pvt Ltd, where Pawar or his wife Sunetra were former directors -- hold shares of Sparkling Soil Pvt Ltd, the chargesheet said.
The ED said Raiendra Ghadge (Ajit Pawar's maternal uncle) is one of the present directors of Non-Con Energies Pvt Ltd and Firepower Marketing Pvt Ltd, and Ajit Pawar and Sunetra Pawar are ex-directors of the two companies. Ghadge is ex-director of Shivraj Agro Estate. Further, Ghadge and Sunetra Pawar are ex-directors of Suiay Agro Estates. In the chargesheet, the ED named Guru Commodity Services, its CA Yogesh Bagrecha and Jarandeshwar Sugar Mills Pvt Ltd.
The ED said a private company, Jarandeshwar Sugar Mills Pvt Ltd, that took the Satara-based sugar mill (Jarendrashwar Cooperative Sugar Mill Ltd) on lease and the two companies in which NCP leader Ajit Pawar was ex-director along with wife Sunetra are part of the same group companies as there were common directors in those companies. Ghadge was was also director in Dound Sugar, which was one among the 12 bidders that participated in the auction.
Babulal Varma, managing director of Omkar Group, told ED his group purchased Guru Commodity Services to participate in the auction process of the mill and the company was not engaged in any other business. Varma stated Hanumant Gaikwad, representative of Jarandeshwar Sugar Mills Pvt Ltd, met him through business associates of Shivalik Ventures for a proposal of leasing the sugar mill.