Shiv Sena leader's properties attached by ED in money laundering case

The ED has attached properties related to Shiv Sena leader Arjun Khotkar in a case related to the illegal auction of cooperative sugar mills by Maharashtra State Co-operative Bank.

The Enforcement Directorate (ED) on Friday attached several land and properties belonging to Shiv Sena leader and former minister Arjun Khotkar in a money laundering case.

The properties have been attached under the provisions of the Prevention of Money Laundering Act (PMLA) in a case relating to the illegal sale of a cooperative sugar mills (Sahakari Sakhar Karkhana) in Maharashtra State Co-operative Bank (MSCB) case.

The ED had initiated a probe based on an FIR registered by the Economic Offence Wing of Mumbai Police. According to the FIR, the cooperative sugar mills were fraudulently sold by the then officials and directors of MSCB at throw-away prices to their relatives/private persons without following the due procedure.

READ | MSC Bank fraud: ED raids multiple premises linked to Shiv Sena leader Arjun Khotkar

The ED probe revealed that Jalna SSK Ltd was established in 1984-85 on around 235 acres of land including 100 acres of land received without any monetary consideration from the Maharashtra government.

The Jalna SSK failed to repay the loan availed from MSCB and was declared as NPA in 2002. To recover its dues, MSCB took possession of the SSK in 2009 under the SARFAESI Act. Thereafter, MSCB conducted an auction with a reserve price of Rs 42.18 crore. Only two parties participated in the said auction. The sugar mill was valued at around Rs 70 crore at that time.

Tapadia Constructions Pvt Ltd from Aurangabad was the highest bidder. Investigation revealed that the buyers of bid documents and final participants in the auction were linked to each other and Tapadia Constructions and other bidder Ajeet Seeds Pvt Ltd are operating from the same building in Jalna.