I-T department clears Rs 1,000 crore properties linked to Ajit Pawar; check details

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In a significant development, the Income Tax (I-T) Department has cleared properties valued at over Rs 1,000 crore that were seized from Maharashtra Deputy Chief Minister Ajit Pawar and his family in 2021. This decision follows the dismissal of allegations by the Prevention of Benami Property Transactions Appellate Tribunal, which had claimed that Pawar and his family were the actual owners of benami properties.

Ajit Pawar had previously been investigated by both the Income Tax Department and the Enforcement Directorate (ED) for alleged involvement in illicit financial transactions. The Deputy Chief Minister had broken away from his uncle, Sharad Pawar's party, in 2022 and joined the BJP-led government. He was re-sworn in as Deputy CM on Thursday, amidst ongoing legal scrutiny over the alleged benami properties.

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A relief for Pawar

Speaking about the ruling by the I-T Appellate Tribunal, Ajit Pawar expressed his relief and said, "When did I join the BJP? It has been around 1.5 years. It is not always necessary to accept allegations blindly. Everyone has the right to appeal." His comments came after the tribunal granted him a clean chit, dismissing claims that he was the owner of benami assets. This decision pertains to the investigation involving the Jarandeshwar Sugar Mill, which the ED had previously attached due to its links with the Maharashtra State Cooperative Bank (MSCB) scam and money laundering.

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Details of the allegations

In 2021, the Income Tax Department had attached assets worth Rs 1,000 crore under the Benami Transactions (Prohibition) Amendment Act, 2016, alleging that these properties were acquired through benami transactions. The seized assets included a flat in Delhi, a resort in Goa, 27 land parcels in Maharashtra, an office in Mumbai, and the Jarandeshwar SSK sugar mill.

The mill was sold at an auction in 2010, with Guru Commodity Services Pvt Ltd, allegedly linked to Ajit Pawar's family, acquiring it. Critics claimed that this was a proxy transaction, with control remaining with Pawar's wife, Sunetra, through a company called Sparkling Soil Pvt Ltd.

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Tribunal's ruling on Jarandeshwar Sugar Mill

The I-T Appellate Tribunal, after reviewing the case, dismissed the allegations, stating there was no concrete evidence to establish that Ajit Pawar was directly involved in acquiring the properties through benami transactions. The ruling stressed that the properties, including the Jarandeshwar mill, could not be considered benami without proof of direct financial involvement by Pawar.

While the I-T Tribunal cleared the properties, the Enforcement Directorate (ED) has continued its investigation under the Prevention of Money Laundering Act, with the mill still attached under this law. However, Ajit Pawar's legal team has argued that properties acquired before the 2016 amendment to the Benami Transactions Act cannot be retroactively seized, as the law applies only prospectively.

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The ongoing legal battle

Despite the I-T Department's ruling, the controversy surrounding the Jarandeshwar Sugar Mill continues. The allegations, primarily related to the mill's acquisition at a discounted price during Ajit Pawar's tenure on the MSCB board, remain a significant point of contention. The mill's connection to Pawar's family has been scrutinized, with critics claiming it was a case of proxy ownership. However, the recent I-T Appellate Tribunal decision marks a major victory for Pawar and his family, as they seek to put the controversy behind them.