Sunetra Pawar's Legal Challenges Persist in Massive Maharashtra Cooperative Bank Scandal
Mumbai continues to be the epicenter of one of Maharashtra's most significant financial controversies as Sunetra Pawar, the state's first woman deputy chief minister, faces ongoing legal examination in the staggering Rs 25,000 crore Maharashtra State Co-operative Bank (MSCB) fraud case. Despite receiving a clean chit from the Mumbai Police's Economic Offences Wing, the Enforcement Directorate has maintained its objections to the closure of the money laundering investigation, ensuring the matter remains active in judicial proceedings.
Multi-Agency Investigations and Benami Property Allegations
The complexity of this case extends beyond the initial MSCB allegations. Both Sunetra Pawar and her husband Ajit Pawar underwent scrutiny under the Benami Properties law by the income tax department, which initially attached properties valued at approximately Rs 1,000 crore. However, the couple secured relief through successive legal channels when the adjudication authority and appellate tribunal determined they could not be classified as beneficial owners without concrete evidence that they had provided consideration for the properties in question.
This financial scandal has evolved into one of Maharashtra's most politically sensitive cases, involving numerous politicians from both governing and opposition factions. The controversy centers around 31 district central cooperative banks operating under the MSCB umbrella, many named after districts and led by senior political figures. These institutions allegedly extended loans to cooperative sugar factories while disregarding established regulations, resulting in substantial financial losses.
The Mechanics of the MSCB Scandal and Subsequent Investigations
The core allegation suggests that between 2002 and 2017, these sugar mills defaulted on payments, causing an estimated Rs 25,000 crore loss to the MSCB. In what critics describe as a questionable recovery process, the bank later auctioned these sugar factories along with their associated lands at significantly reduced prices, primarily to relatives of bank officials under the guise of loan recovery.
Legal action gained momentum when a Public Interest Litigation filed in the Bombay High Court led to the registration of a First Information Report in 2019, prompting formal investigations. The Enforcement Directorate subsequently initiated a money laundering case based on these developments. The political landscape shifted dramatically when Ajit Pawar, then serving as opposition leader, along with his Nationalist Congress Party faction, joined the Mahayuti government alliance comprising the Bharatiya Janata Party and Shinde Sena.
Specific Allegations Involving Jarandeshwar Sugar Mill Transaction
Sunetra Pawar's involvement came under particular scrutiny concerning the acquisition of Jarandeshwar Sugar Co-operative Mill, while Ajit Pawar's connection stemmed from his directorship at MSCB. According to ED documents, the mill was sold by MSCB in a 2010 auction to Guru Commodity Private Limited, a company linked to a Mumbai-based builder, for Rs 65.7 crore. Immediately following this transaction, Guru Commodity leased the mill to the newly-formed private entity Jarandeshwar Sugar for an annual charge of Rs 12 lakh.
The Enforcement Directorate's investigation revealed that Rajendra Ghadge, director of Jarandeshwar Sugar Mills Limited and maternal uncle to Ajit Pawar, played a central role in the transaction. Investigators noted that funds utilized for the mill's purchase primarily originated from Jarandeshwar Sugar, which in turn received Rs 20 crore from Jay Agrotech Private Limited—a company where Sunetra Pawar served as director.
Ongoing Legal Challenges and Activist Interventions
Activist Anjali Damania, who has challenged the income tax department's findings, recently highlighted a significant legal development. "Last year, I formally requested the income tax authorities to reopen the case against the Pawars," Damania stated. "This request followed the Supreme Court's decision to recall its order in the Ganpati Dealcom case, which had previously allowed retrospective application of the Benami Transaction (Prohibition) Amendment Act, 2016—the very provision that provided relief to the couple."
Damania has specifically urged tax authorities to reattach properties belonging to the Pawars and Bhujbals that were previously released based on the now-recalled Supreme Court order. This development introduces new dimensions to the legal proceedings and demonstrates how evolving judicial interpretations continue to shape the trajectory of this complex financial investigation.
The MSCB case represents more than just a financial scandal—it embodies the intricate intersections of political power, cooperative banking structures, and legal accountability in Maharashtra's governance landscape. As judicial processes continue to unfold, this case remains a critical test for financial oversight mechanisms and political transparency in one of India's most economically significant states.
