Witness named Sharad Pawar in Rs 25,000 cr scam, ED likely to question NCP chief soon

Nationalist Congress Party chief (NCP) supremo Sharad Pawar has been named as accused by the Enforcement Directorate on the basis of a witness statement who has implicated the senior politician in the Rs 25,000 crore scam, sources said.

The Enforcement Directorate (ED) on Tuesday booked Sharad Pawar, his nephew and former Deputy Chief Minister Ajit Pawar and others in a criminal case of money laundering linked to the alleged Rs 25000-crore scam in Maharashtra State Cooperative Bank (MSCB).

A top government official maintained that the investigative agency had recorded a statement of the witness who has allegedly given inside details of how Sharad Pawar played a key role in the scam. The probe agency is also likely to record the statement of the witness under Prevention of Money Laundering Act which will be admissible before the court.

The ED is also likely to record statements of the bank officials, directors and promoters of sugar cooperatives based on which decision of calling Sharad Pawar for questioning will be taken.

On being named by the ED before the Maharashtra assembly elections, Sharad Pawar said: "If they have registered a case against me, I welcome it. At a time when elections are round the corner, a person like me who has nothing to do with the matter whatsoever is being implicated into it. When will the people of Maharashtra realise this? The impact will be felt, and I need not tell who will gain from it."

ED has filed an Enforcement Case Investigation Report (ECIR), which is equivalent to an FIR, against NCP Supremo Sharad Pawar, Ajit Pawar and others in connection to the MSCB scam.

According to sources, ECIR by the ED names Sharad Pawar, Ajit Pawar, Diliprao Deshmukh, Isharlal Jain, Jayant Patil, Shivaji Rao Nalvade, Anand Rao Adsul, Rajendra Shingane, Madan Patil and others. The case till date was being investigated by the Economic Offence Wing and Maharashtra Police, after the directions from Bombay High Court.

According to ED's case, it has been alleged that the then top executives i.e. chairman, MDs, directors, CEOs, managerial staff of Maharashtra State Cooperative Bank (MSC) and office bearers and directors of Shakhar Karkhanas (Cooperative Sugar Factories), Soot Girnis, and other processing units, were given loans in fraudulent manner by MSC bank and in process, several illegalities were committed.

The scam is pegged at Rs 25,000 crore according to the probe agency.

The loans were provided to Cooperative Sugar Factories by the officials of the MSC bank who are connected with owners of factories.

"There were several irregularities in the sanctioning of loans committed, only with the purpose of extending benefits to the directors of the lending bank, for personal gains thereby defrauding in cheating the bank and its shareholders," said the probe agency.

It has also been alleged that loans were sanctioned to cooperative sugar factories, despite having weak financial and negative net worth.

"No collateral was taken in many cases and loans were extended on the basis of fraudulent and dishonest presentation to the bank. Additional working facilities were also extended to a certain few CSF without having any prudent reasons," said a source from ED.

The ED claims that due to the alleged mismanagement and underutilisation of capacity, increasing overhead expenditure, the Cooperative Sugar Factories were sold after a decision taken by the board of directors, at a price much below the reserve price to provide wrongful gain to the purchaser.

"The purchasers had personal or political links to the board of directors and the consent of borrowing units were not taken before undertaking such sale, clearly shows the dishonest intention on part of the board of directors," added the source.