Maharashtra: ED files Money Laundering case against Sharad Pawar, Ajit Pawar in MSC bank scam

The Enforcement Directorate (ED) on Tuesday registered a case of money laundering against Nationalist Congress Party (NCP) chief Sharad Pawar and his nephew and former deputy chief minister Ajit Pawar in connection with a scam pertaining to the Maharashtra State Cooperative Bank (MSCB). The move comes less than a month before Maharashtra goes to polls.

Just a days before the state assembly election, and when the Nationalist Congress Party (NCP) leaders are busy in poll campaigning, the Enforcement Directorate (ED) registered a case of money laundering against the NCP chief Sharad Pawar, his nephew Ajit Pawar along with other leaders in case of scam pertaining to Maharashtra State Cooperative (MSC) Bank. 

The sources from ED said that the agency will issue summons to the directors whose name are included in the FIR. He added that there is possibility that the notice will not serve immediately as the agency will first review the FIR.

The Mata Ramabai Ambedkar (MRA) Marg police on August 26 had filed an First Information Report (FIR) against 76 then directors including Ajit Pawar and other functionaries of MSC bank, popularly known as Shikhar Bank (Apex Bank) in more than Rs 25,000 crore scam.

Other accused include Peasants and Workers Party (PWP) leader Jayant Patil and officials from the superseded bank’s units in 34 districts in the state, an official said.

The accused were allegedly complicit in causing losses to the tunes  of Rs 25,000 crore to MSC bank between 2007 and 2011.

Though, name of NCP president Sharad Pawar is not included in the list of accused, the National Bank for Agriculture and Rural Development (NABARD) in its report submitted to the government had mentioned his name and held him responsible for the scam. The NABARD has recorded its report that it was a criminal conspiracy and abetment since all the decisions of MSC bank were at Pawar’s behest.

It is alleged that there were irregularities in loan disbursements to cooperative sugar factories, and that loans were sanctioned despite them having weak financials. In many cases, loans were sanctioned without any collateral. The cooperative sugar factories were allegedly sold to close relatives of certain politicians.

An inspection by the National Bank for Agriculture and Rural Development (NABARD) as well as a charge sheet filed by a quasi-judicial inquiry commission under the Maharashtra Cooperative Societies (MCS) Act had earlier blamed the “decisions, actions and inactions” of Pawar and the other accused for the loss.

The NABARD audit report revealed breach of several banking laws and RBI guidelines by the accused in distribution of loans to sugar factories and spinning mills, and subsequent default on repayment and recovery of such loans.

Local activist Surinder Arora filed a complaint with the Economic Offence Wing (EOW) in 2015 and approached the high court, seeking that an FIR be registered.

In view of the deficiencies pointed out by NABARD, the RBI had in May 2011 directed to supersede the MSC Bank board of directors and appoint an administrator to look after its affairs.

Meanwhile, the accused whose name is included in 76 directors includes VIjay Sinh Mohite Patil has joined ruling Bharatiya Janata Party (BJP) before the 2019 Lok Sabha polls.