No proxy in sale of sugar unit to Rohit’s firm in 2012: Judge | Mumbai News

Mumbai: The special court held that the sale of Kannad Sahakari Sugar Factory in an auction in 2012 to NCP (SP) MLA Rohit Pawar‘s company, Baramati Agro, followed the due legal process.“The entire auction proceedings were initiated and completed in 2012 after the administrators appointed by RBI had taken charge of the management of the bank. In the entire prosecution complaint, there is no allegation whatsoever against the administrators of the bank for any act of conspiracy for purported illegalities in the sale of [the] factory. Therefore, no question can arise as to the validity and legality of the sale,” the judge said. ED had alleged that Baramati Agro had induced Hitech Engineering Corporation India to participate as a co-bidder to create a facade of competition. According to its chargesheet, Baramati Agro transferred Rs 5 crore to Hitech Engineering just before the auction, which the latter then used as its earnest money deposit. On basis of this, it had named Rohit as an accused in its money-laundering chargesheet. EOW had countered ED’s claim. The judge found no mens rea (criminal intent) to cause loss to the bank. “Baramati Agro was declared the highest and successful bidder only after following all the necessary procedure provided under the law, including valuation of the property by an independent party, public advertisements and open bidding process. There is no credible or valid evidence in respect of any purported illegality.” The judge noted that Baramati Ago had paid over Rs 450 crore from its current accounts at Bank of India and Punjab National Bank in 2012 in various trenches. The judge pointed out that Baramati Agro was in a sound financial position, citing profits of Rs 31.9 crore and substantial reserves.