Rohit Pawar Named in ED Case as MSC Bank Probe Closed by EOW

The long-running investigation into alleged financial irregularities at the Maharashtra State Cooperative (MSC) Bank has entered a new phase after the Economic Offences Wing (EOW) formally shut its criminal probe, even as the Enforcement Directorate (ED) continues to pursue a parallel money-laundering case naming NCP MLA Rohit Pawar among the accused.

Special Court Accepts EOW Closure

A special court accepted the EOW’s closure report, concluding that no criminal offence could be established against the bank’s office-bearers following detailed investigation. This was the second such report filed by the agency after conducting further inquiries as directed by the court.

The first closure report was submitted in 2020. After objections from complainants, the court permitted additional investigation in 2022. The EOW subsequently reiterated its findings and filed a fresh closure report in early 2024, which has now been accepted.

ED Challenge Pending in High Court

Despite the closure at the state level, the Enforcement Directorate has filed multiple prosecution complaints in connection with the case, alleging money laundering. The agency earlier moved the Bombay High Court challenging the EOW’s decision to close the case. That petition remains under consideration.

The ED’s case names Rohit Pawar and several others, keeping the legal proceedings active even after the state police probe has concluded.

Background: NABARD Inspections and Loan Irregularities

The controversy dates back to inspections carried out by the National Bank for Agriculture and Rural Development in the early 2000s. Inspection reports reportedly pointed to irregularities in loan sanctions, particularly to cooperative sugar mills and companies that later became non-performing assets (NPAs).

Activists alleged that loans were approved without proper assessment of repayment capacity between 2002 and 2017. They also questioned asset recovery actions under the SARFAESI Act, claiming properties were auctioned below reserve prices, allegedly benefiting firms with political links.

Complainants Objected to Closure

Those who had filed complaints argued that crucial audit findings and inspection reports were not adequately considered. They maintained that the material available indicated serious lapses in governance and financial management.

However, the EOW concluded that the evidence gathered did not substantiate criminal intent or prosecutable wrongdoing by the bank’s directors or officials.

Legal Battle Continues

With the criminal investigation officially closed at the state level, the spotlight now turns to the ED’s pending proceedings. The High Court’s eventual ruling on the agency’s challenge could determine the future trajectory of the case.