Plea filed in Bombay High Court challenges probe agency's seizure of sugar mills

A plea has been filed before the Bombay High Court seeking that the Cooperative Sugar Factory, under the Enforcement Directorate's custody, be handed over to its founders and original owners.

The plea was filed by Shalini Patil through advocate Vinod Sangvikar. Patil is the founding member of the Shri Jarandeshwar Sahakari Sakhar Karkhana (SSK) and also a former MLA and MP from Maharashtra's Sangli.

The plea pointed out that the sugar factory was established by farmers and key stakeholders in the cooperative.

"They (owners of sugar mills) invested their time, effort, and resources to build and nurture the cooperative, making them the rightful owners of the institution," said the plea.

It added that the ED investigation "revealed illegalities and irregularities, leading to the seizure of the said factory. In the spirit of justice and adherence to the law, returning the factory to its original owners would rectify the wrongs committed."

SSK, situated in Satara district, was registered in 1989 and Patil claims to be the founding member as well as its chairperson. It was financed by a consortium of seven banks. However, in 2005, as the Maharashtra government had decided to lease out sugar factories, there were multiple companies that tried to run them, but as dues mounted, the banks seized the properties and auctioned the factories.

According to the plea, SSK was valued at Rs 40.80 crore in 2010 by the banks and Patil's plea contended that the value of the land, building, plant and machinery was not less than Rs 103 crore.

SSK was eventually auctioned for Rs 65.75 crore to Guru Commodities Pvt. Ltd. The entity even claimed to not have been present at the pre-bid meeting and said it hadn't participated in the process.

The ED had filed a chargesheet in the case and taking cognisance of the ED chargesheet, a special PMLA court had said that "the assets of SSK were acquired by the close associates of Mr Ajit Pawar at a throw-away price".

NCP leader and Maharashtra Deputy Chief Minister Ajit Pawar was at the helm of affairs of the cooperative bank when the decisions were allegedly taken.

Patil's plea stated nearly 25,000 farmers who were the original beneficiaries and owners of SSK awaited the clearance.

Patil also claimed she had written to the ED seeking that the sugar mill be handed over to its rightful owner but the probe agency did not respond.