Mumbai: The special court has cleared the sale of Kannad Sahakari Sugar Factory to Rohit Pawar’s company, Baramati Agro, in a 2012 auction, ruling that the process followed all legal procedures, The Times of India reported.
The court noted that the auction was conducted after administrators appointed by the Reserve Bank of India had taken charge of the bank’s management. “There is no allegation against the administrators for any conspiracy or illegalities in the sale,” the judge said, affirming the legality of the transaction.
The Enforcement Directorate (ED) had previously alleged that Baramati Agro had induced Hitech Engineering Corporation India to act as a co-bidder to create a facade of competition, transferring Rs 5 crore to Hitech just before the auction for its earnest money deposit. Based on this, Rohit Pawar was named in ED’s money-laundering chargesheet.
However, the court found no evidence of criminal intent to cause loss to the bank. It observed that Baramati Agro had followed all required procedures, including independent property valuation, public advertisements, and an open bidding process. Payments totaling over Rs 450 crore were made from its Bank of India and Punjab National Bank accounts in 2012 in multiple tranches.
The judge also cited the company’s strong financial position, noting profits of Rs 31.9 crore and substantial reserves, underscoring that the sale was conducted transparently and in accordance with the law.
