Income Tax Appellate Tribunal Clears Ajit Pawar of Benami Property Allegations, ₹1,000 Crore Assets Released

The Income Tax Appellate Tribunal has cleared Maharashtra’s Deputy Chief Minister, Ajit Pawar, of all allegations related to benami properties worth over ₹1,000 crore, a ruling that provides significant relief to the NCP leader. The case stemmed from an investigation launched by the Income Tax (I-T) Department in 2021, following claims that Pawar and his family owned benami properties, including the Jarandeshwar Sugar Mill.

In its ruling, the tribunal dismissed the claims made by the Prevention of Benami Property Transactions Appellate Tribunal (PBPTAT), citing insufficient evidence to link Ajit Pawar’s funds to the properties in question. This decision clears the air around the accusations and grants Ajit Pawar a clean chit in the case involving the sugar mill.

Ajit Pawar, who has been a prominent figure in Maharashtra politics, broke away from his uncle Sharad Pawar’s Nationalist Congress Party (NCP) in 2023 to join the ruling BJP-led government as Deputy Chief Minister. He was re-sworn into office earlier this week. Addressing the media, Pawar expressed his relief, stating, “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.”

The controversy over Ajit Pawar’s properties began in 2021 when the I-T department seized assets worth over ₹1,000 crore, alleging they were acquired through benami transactions. The investigation also involved the Jarandeshwar Sugar Mill, which had been attached by the Enforcement Directorate (ED) under a money laundering probe. The ED had linked the sugar mill to the Maharashtra State Cooperative Bank (MSCB) scam.

The tribunal’s judgment, however, dismissed the accusations of benami ownership, ruling that there was no direct proof connecting Pawar’s funds to the acquisition of the Jarandeshwar Sugar Mill or any other assets. This decision has paved the way for the release of the seized properties, including a flat in Delhi, a resort in Goa, and 27 land parcels across Maharashtra.

The Jarandeshwar mill, which had been sold through an MSCB auction in 2010, was claimed to have been acquired by Guru Commodity Services Pvt Ltd with partial funding from Sparkling Soil Pvt Ltd, a company reportedly linked to Ajit Pawar and his wife, Sunetra. Critics had alleged that Guru Commodity Services acted as a proxy owner for the Pawar family. However, the I-T tribunal found no solid evidence to support this claim.

Legal teams representing Ajit Pawar had argued that the Benami Transactions (Prohibition) Amendment Act, 2016, which had been retroactively applied to the properties, could not be used to seize assets purchased before the amendment. The tribunal accepted this argument, thereby relieving Pawar of the charges.

The I-T department’s investigation in 2021 had included searches at nearly 70 locations across various cities, including Mumbai, Pune, Baramati, Goa, and Jaipur, where officials uncovered alleged unaccounted transactions worth ₹183 crore. In addition to the properties mentioned above, several other assets were seized, which were allegedly connected to Ajit Pawar and his associates.

While the I-T department has cleared Ajit Pawar of the benami property allegations, the Enforcement Directorate’s investigation into the Jarandeshwar Sugar Mill continues under the Prevention of Money Laundering Act (PMLA), with a separate case still ongoing.

This ruling marks a significant development in Ajit Pawar’s ongoing legal battles and political career, as he remains a key figure in Maharashtra’s political landscape.

Sources By Agencies

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