Maharashtra Deputy CM Ajit Pawar, nephew Rohit gets clean chit in MSC Bank fraud case
- In Reports
- 08:24 PM, Apr 24, 2024
- Myind Staff
The closure report filed by the Mumbai police regarding the alleged Rs 25,000-crore scam at the Maharashtra State Cooperative Bank (MSCB), which implicated Deputy Chief Minister Ajit Pawar and others, has indicated that the bank did not suffer any unjust losses due to loans extended to sugar mills and other entities. The police, referencing an inquiry report, stated that the MSCB did not engage in any misconduct in this regard. The case revolves around loans amounting to thousands of crores of rupees acquired by sugar cooperatives, spinning mills, and other entities from district and cooperative banks.
In March, the Economic Offences Wing (EOW) of the Mumbai police submitted the closure report to Special Judge R N Rokade, who presides over cases related to Members of Parliament (MPs) and Members of Legislative Assembly (MLAs). The EOW stated that it did not discover any incriminating evidence in the materials provided by the Enforcement Directorate (ED) regarding the acquisition of a cooperative sugar factory by Rohit Pawar's Baramati Agro.
Following NABARD's inspection of the Maharashtra State Cooperative Bank (MSCB) between 2007 and 2011, along with the subsequent settlement report, an inquiry was initiated in January 2013 under the Maharashtra Cooperative Societies Act. The objective was to ascertain the bank's operations, financial standing, and any losses or damages incurred during this period. However, the inquiry report submitted to the cooperative commissioner in January 2014 did not indicate any losses suffered by the bank, according to the closure report. Subsequently, upon objection raised by the complainant, another inquiry was conducted by a retired chief district judge in February 2020.
The closure report highlighted that the former judge, appointed as an authorised officer by the cooperative commissioner, determined that there was "no unjust loss to the bank as a result of loans provided to the factories" and that "the bank was recovering the owed amounts through legal means." Additionally, the officer mentioned in the inquiry report that the bank did not engage in any wrongdoing, as stated in the police report.
Apart from the inquiry reports, the police investigation also relied on witness statements, including those of bank officials, and the scrutiny of relevant documents. Despite reinvestigating the case, the police stated that no incriminating evidence was found, leading to the filing of the closure report.
In the ongoing developments, Surinder Arora, the original complainant in the case, has lodged a protest petition against the closure report. Simultaneously, the ED investigating a linked case has expressed interest in intervening in the proceedings.
Initially, the EOW submitted its first closure report in September 2020, which was accepted by the court. However, in October 2022, the probe agency informed the special court that it was carrying out further investigations into the matter in response to the concerns raised by the protest petitioners (complainants) and the ED.
The EOW initiated legal action by filing a FIR in the case, invoking sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC), along with provisions of the Prevention of Corruption Act and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The FIR listed Ajit Pawar and over 70 others, who served as directors of the MSC Bank during the pertinent period, as accused parties. This action followed a directive from the high court issued in August 2019.
According to the FIR, irregularities within the bank resulted in losses amounting to Rs 25,000 crore to the state exchequer between January 1, 2007, and December 31, 2017. The FIR alleged violations of banking and RBI regulations, particularly in the disbursement of loans to sugar mills at significantly reduced rates and the sale of assets belonging to defaulting businesses at extremely low prices. These alleged actions were deemed to have contravened established banking norms and practices, leading to substantial financial losses.
Image Source: Republic World
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