What’s more, the comments came at a time when Pawar engineered a split from his uncle, Sharad Pawar, to lead a faction of legislators to join the Bharatiya Janata Party-Shiv Sena government.

But, what is the story of JSSK? And how exactly is it connected to Ajit Pawar?

JSSK Limited became operational in 1999-2000 with 27,000 farmer members, who put in an initial capital of ₹42.48 crore. The factory had the capacity to crush 2500 MT of sugarcane. In 2005, the state government had appointed the VP Rane committee to suggest measures for improving the health of sugar factories in Maharashtra. The Rane committee conducted a detailed study of sugar factories in the state and identified 74 mills for further recommendations. JSSK was in 13th place on the list of ill sugar factories.

That year, due to severe drought conditions, JSSK did not have a crushing season. The following year, banks refused to give it loans and it became difficult for JSSK management to run the factory. The management, under the leadership of Shalinitai Patil, leased the factory to Warana Group (owned by politician Vinay Kore, the founder chairman of Jan Surajya Shakti party) for two seasons and later to Uttar Pradesh-based KM Sugar company in 2007-08 and Sneha Sugar in 2009-10.

However, to keep the operations going, JSSK took a loan from Maharashtra State Co-operative Bank (MSCB). By the end of March 2008, the loan amount was ₹78.90 crore and JSSK became a Non-Performing Asset (NPA). The MSCB initiated action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) and issued a notice to JSSK. It took possession of JSSK and the distillery plant on July 16, 2010.

Ajit Pawar was the director of MSCB at the time, and the market price of the land, machinery and sugar plant was evaluated at ₹ 35.64 crore and the distillery plant at ₹5.59 crore. However, the JSSK management disagreed with the amount, and conducted a separate evaluation through a government-registered valuer who arrived at a figure of ₹103.31 crore. However, the MSCB stuck to its own evaluated price, and on August 11, 2010, the board of directors of MSCB fixed the cost of JSSK at ₹40 crore and the distilleries at ₹5.77 crore, when it was put up for auction.

“The price fixed by MSCB was undervalued as a valuation report of a government-approved valuer appointed by the JSSK management and the valuation done by MSCB was not [the same],’’ Enforcement Directorate documents stated.

On September 14, 2010, a pre-bid meeting for the auction of JSSK saw 22 parties participate. Eventually, 13 filed tenders. Guru Commodity Services Pvt Ltd made the highest bid of ₹65.75 crore. In October, Ajit Pawar conducted a meeting in which the sale of JSSK to M/s Guru Commodity was approved. In November, Guru Commodity took physical possession of JSSK and received a sale certificate on November 25, 2010.

But the money never exchanged hands, a petition by former JSSK board member and others claimed.

Money trail

In 2019, Shalinitail Patil, along with activist Anna Hazare, and Manikrao Jadhav, a former MLA and chairman of Maharashtra Rajya Shetkari Kamgar Mahasangh (which works for the welfare of agricultural farmers) among others, filed a Public Interest Litigation (PIL) which precipitated an ED investigation and attached properties of the JSSK.

In 2022, considering the dependence of farmers and workers in the region on JSSK, Patil filed an application in ED Court with the signatures of more than 10,000 farmers seeking permission to run JSSK, which now lies attached by the ED.

Jadhav, who was elected in 1995 from the Nilanga assembly constituency in Latur district after defeating former CM of Maharashtra Shivajirao Patil Nilangekar, alleged that no one from Guru Commodity attended the pre-bid meeting that was held back in 2010. “No one from Guru Commodity attended the meeting. They even did not file a tender then how did Guru get the tender? Ajit Pawar who was present in the meeting, used his political power before the selection of Guru Commodity as the highest bidder. ’’

According to Jadhav, Ajit Pawar "illegally" sold JSSK to Guru Commodity whose annual turnover was just ₹4 lakh. According to Jadhav, Guru Commodity neither paid 20% of the total deal amount within seven days nor the remaining 75% within 90 days as required by the tender documents.

The ED's investigation also concluded that the auction was not conducted in a fair and proper manner, and benefitted Guru Commodity, documents stated. During an investigation of the source of funds, ED found a significant amount of money for the purchase of JSSK was sourced from Sparkling Soil Pvt Ltd by the Guru Commodity. During the ED investigation, it was revealed that Rajendra Ghadge, who is one of the directors of Jarandeshwar Sugar Mills Pvt. Ltd was also a director in Sparkling Soil and Sunetra Ajit Pawar was one of the directors of Sparkling Soil during the period 2004 to 2008. Sunetra Ajit Pawar is the wife of Ajit Pawar, who was the director of MSCB when the auction and sale of JSSK’s property took place.

In another surprising move, on November 25, 2010, after taking possession of the JSSK, Guru Commodity gave JSSK on lease to Jarandeshwar Sugar Mills Ltd for an annual charge of ₹12 lakh initially for five years and a year later, extended the lease till 2044. The rent amount was also increased to ₹1.5 crore, and by the third year, to ₹3 crore. Since 2013, however, the rent amount has not been increased.

“This clearly shows that JSSK was acquired by Jarandeshwar Sugar Mills Pvt. through a dummy entity, Guru Commodity. Immediately after it was taken over by Guru Commodity, it was leased to Jarandeshwar Sugar Mills Ltd. on a nominal rent,” Jadhav said.

According to the ED investigation, the rent was not paid regularly and a majority of what was paid was routed back to Jarandeshwar Sugar Mills Pvt. Ltd. under the guise of return of deposit/preferential share capital.

In December 2010, within a month of taking the JSSK on lease, Jarandeshwar Sugar Mills Pvt Ltd. took a loan of ₹89 crore from Pune District Central Cooperative Bank (PDCCB) on the collateral security of the sugar mill for the purpose of expansion of JSSK — this despite the fact that only months before, the mill was valued at ₹40 crore, Jadhav said.

ED alleged that the Pune DCCB sanctioned various loans in the name of sugar stock in the factory whereas there was no sugar stock available with the sugar factory at the time of sanction of loan. During this period, Ajit Pawar was a director on the board of Pune DCCB. During the investigation, it was also revealed that till date, Jarandeshwar Sugar Mills Pvt. Ltd. has availed more than ₹700 crore by mortgaging the properties of the mill.

ED's charges

According to ED, the auction of the JSSK was conducted in such a manner that it could be purchased by Guru Commodity Services, a dummy company, at an undervalued price. The JSSK was controlled through Jarandeshwar Sugar Mills Pvt. Ltd. under the guise of taking the property on lease. The factory premises are now being utilised by Jarandeshwar Sugar Mills Pvt. Ltd. for generating revenue and for availing loans from banks.

ED officials informed that the JSSK was allotted to Guru Commodity Services Pvt. Ltd. and the process of allocation was questionable as the bank officials ignored all the prevailing procedures by undervaluing the assets. Therefore, the assets of JSSK (now owned by M/s Guru Commodity) are proceeds of crime in terms of Section 2(i)(u) of the PMLA, 2002 as the same has been obtained by committing the scheduled offence registered under the FIR No. 224 of 2019 on August 26, 2019 by Mumbai Police.

According to the ED, Guru Commodities and Jarandeshwar Sugar Mills Pvt Ltd and its directors have prima facie committed an offence under Section 3 of PMLA, 2002, and that the properties presently under orders of Provisional Attachment to the extent of ₹65.75 crore are proceeds of crime involved in money laundering and thereby, the Provisional Attachment order of properties was passed on July 2021.

Ajit Pawar refuted the allegations levelled against him in connection with Jarandeshwar Sahakari Sugar Karkhana. He said “The truth will come out soon. The auction of the sugar mill was carried out lawfully.’’

Pawar said the court asked the bank to sell the sugar mill only if the administration failed to clear bank dues. Accordingly, the MSCB initiated the tendering process to which many companies responded. Finally, Guru Commodity’s bid was the highest, hence the bank sold the mill to them.