ED attaches properties worth Rs 78.38 crore of Jalna co-op sugar mill linked to Sena ex-MLA

According to sources, the central agency initiated investigation under PMLA based upon an FIR registered by the Economic Offence Wing of the Mumbai Police on August 26, 2019.

The FIR stated that Jalna SSK was fraudulently sold by then officials and directors of MSCB at throw away prices to their relatives or private persons without following due procedure under the SARFAESI Act.

The probe revealed that Jalna SSK was established in 1984-85 on around 235 acre, including 100 acre received from the Maharashtra government without any monetary consideration. The SSK failed to repay a loan availed from MSCB and was declared as a non-performing asset on March 31, 2002.

A press note issued by the ED said Jalna SSK had to pay an outstanding loan of Rs 33.49 crore to the MSCB as on August 30, 2008. To recover its dues, the MSCB took possession of the SSK on February 16, 2009 under SARFAESI Act, it added.

The ED said that MSCB conducted an auction of Jalna SSK on February 27, 2012 with a reserve price of Rs 42.18 crore. Only two companies from Aurangabad – Tapadia Constructions Private Limited and Ajeet Seeds Private Limited – participated. Tapadia Constructions was the highest bidder at Rs 42.31 crore.

The ED probe later revealed that both companies were linked to each other. “Tapadia Constructions and Ajeet Seeds are operating from the same building in Jalna. After receipt of final installment of sale amount by MSCB, sale certificate was issued to Tapadia Construction on the same day – December 3, 2012. Tapadia Constructions did not operate the SSK and after 15 months, the SSK, along with the 235 acre, was said to be sold to Arjun Sugar Industries Private Limited,” read the statement.

The ED further said that Arjun Sugar was incorporated by Khotkar and others on May 8, 2012, only to purchase the Jalna SSK. It added that while Khotkar was on the board of directors of MSCB during 1998-2004, he was the director of Jalna SSK from 1997 to 2003.

During investigation, the ED came to know that around Rs 10.56 crore paid by Tapadia Constructions to MSCB as initial deposit in lieu of Jalna SSK was an adjustment entity introduced by conversion of cash through shell companies. Further, Rs 31.73 crore was sourced from Arjun Sugar on December 3, 2012.

Thus, the ED said that Tapadia Constructions was only a proxy entity that purchased Jalna SSK from MSCB.

According to the ED, the probe revealed that while Jalna SSK was sold for Rs 42.31 crore, its valuation done by the agency showed that it was worth around Rs 78 crore. It added that the government-approved valuer, in its report dated January 20, 2022, had evaluated the SSK’s immovable assets at Rs 48.38 crore and movable assets at Rs 30 crore in 2012.