ED action on sugar mill just the beginning: Maharashtra BJP chief

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Maharashtra BJP chief Chandrakant Patil on Friday said the Enforcement Directorate's action against Jarandeshwar Sahkari Sugar Karkhana, located in Chimangaon-Koregaon in Satara district, was just the "beginning" as the purchase of sugar and textiles mills with the help of Maharashtra State Co-operative Bank funds was under the radar of Central agencies.

The ED on Thursday attached the mill under an anti-money laundering law in connection with the alleged Maharashtra State Cooperative Bank (MSCB) scam. Patil also said he would approach Union Home Minister Amit Shah to start an inquiry into such transactions where mills worth several crore rupees were bought at throwaway prices.

Explaining the alleged scam, Patil said mills were shown as incurring losses and were then taken over by the bank for auction. "During the auction, mills worth Rs 200 crore would be sold to bidders for Rs 15 crore. After the transaction, loans to the tune of Rs 300 crore would be taken from banks. Such fraudulent transactions have taken place and the purchase of 24 sugar mills is under the ED radar," Patil said.

"The action initiated in the Jarandeshwar sugar mill case is just the beginning. There is a big list of such transactions which is under the radar of the ED. I am going to approach Union Home Minister Amit Shah seeking an inquiry into the purchase at throwaway prices of of sugar mills worth several hundred crore rupees," Patil added.

He refuted allegations that the ED action was to create political pressure, adding that those who are making such insinuations must at least admit that irregularities have taken place in these transactions.

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