Earlier this month, the Reserve Bank of India dissolved the MSCB due to bad debt.

Based on a private criminal complaint filed by the managing director of Koregaon-based Jarandeshwar Cooperative Sugar Factory in Satara district, judicial magistrate first class of Koregaon K.G. Paldewar on Friday initiated legal proceedings against Ajit Pawar, Patil, and others.

In the complaint filed in the court by Balakrishna Anand Ghadge, the managing director of the sugar factory, the complainant claimed that Pawar and the other former directors of the MSCB had forged the sale deed of the Jarandeshwar Cooperative Sugar Factory and claimed that the government had valued the property and its adjoining land at INR40.84 crore before it was put up for auction by the MSCB.

The complainant told the court that the board of directors of the MSCB accepted the bid by Guru Commodity, a Mumbai-based company, for INR65.75 crore. "It is mandatory for the buyer to deposit 75 percent of the amount within 15 days, but Guru Commodity failed to deposit the money even after 90 days of the deal. Despite this, the MSCB board of directors issued a sale deed on November 23, last year in favor of the company."

Ghadge, the complainant, further alleged in the complaint that a revised sale deed to the tune of INR18 core was signed before the registrar of companies in Karad in Satara district on May 13 this year. Guru Commodity has a turnover of just INR63 lakh and a annual profit of INR6 lakh. Despite this, the MSCB gave INR56 crore loan to the company. On March 31, this year, the MSCB showed that the company had paid INR18.16 crore, when INR13.10 crore were paid by the MSCB and INR5.6 crore by the Jarandeshwar Sugar Factory," Ghadge claimed.