Mumbai: Enforcement Directorate (ED) investigations into two politically sensitive cases involving deputy chief minister Ajit Pawar will continue as the agency has not filed closure reports in these cases though he has got relief in the benami property transactions cases probed by the Income Tax (I-T).
The state anti-corruption bureau and economic offences wing (EOW) of Mumbai police has filed closure reports in the irrigation scam and Maharashtra State Cooperative Bank (MSCB) scam cases linked to Pawar. But the parallel ED probes concerning money laundering remain active, though these aforementioned investigations are the basis on which ED initiated a probe. In ED parlance, these police-ACB cases were the predicate offences on the basis of which they filed cases.
Last month, an Appellate Tribunal gave a clean chit to Ajit Pawar and his kin in cases where they faced an I-T probe on allegations that they owned properties through benamidars (see graphic).
ED’s case in the MSCB scam was based on a Mumbai police FIR, which alleged that sugar co-operative mills defaulted on MSCB loans after which they were auctioned and those holding key positions in MSCB ensured that those mills were purchased by their kin or close associates at throwaway prices. The EOW filed closure reports in the case twice, and the ED has taken objection to them. The court is, however, yet to decide on the closure report.
The ED had attached the Jarandeshwar sugar mill after linking it with Ajit Pawar. It also attached assets of NCP (SP) leaders Rohit Pawar and Prajakta Tanpure.
As for the state anti-corruption bureau (ACB) case, it was filed in 2020 in connection with the alleged Vidarbha Irrigation Development Corporation (VIDC) scam. No senior politicians were named in the case or faced any action in the case.
Many facing an ED probe are now hopeful of a discharge as the Supreme Court, in Vijay Madanalal Choudhary vs Union of India, has said that if there is no predicate offence, there cannot be a case for the offence of money laundering. Those named in such cases can thus ask for closure of money laundering cases, but no influential politicians have so far sought relief on such grounds. But a few businessmen have got relief on such grounds from the courts.
In 2019, the central govt amended the Prevention of Money Laundering Act to include a compulsory requirement that ED must submit a closure report to the trial court for final determination if it intends to close a case. Previously, ED could terminate money laundering cases internally after obtaining approvals from senior officials.