Auction stalled in sports complex scam amid department-bank dispute

Chhatrapati Sambhajinagar

The auction of assets worth Rs 21.59 crore seized in the Sports Complex scam remains stalled due to a dispute between the Sports Department and government bank. While the Economic Offences Wing (EOW) has submitted a 3,789-page chargesheet, the Sports Department is demanding that the bank reimburse the embezzled amount before moving forward, senior sources confirmed.

The scam came to light on December 21, 2024, with a case registered at the Jawaharnagar police station. The probe was later handed over to EOW Inspector Sambhaji Pawar. Investigators found that the prime accused, 21-year-old Harshkumar Kshirsagar, diverted Rs 21.59 crore meant for the sports complex into 24 personal and proxy bank accounts. The money was used to purchase luxury apartments, high-end vehicles, diamond-studded eyewear, and to fund international trips.

Bail denied to all accused

Harshkumar, along with his father Anil Kshirsagar, mother Manisha, uncle Hitesh Shardul, clerk Yashoda Shetty, her husband and mess operator Jeevan Vindda, Wave Multi Services manager Nagesh Dongre, friend Arpita Wadkar, Indian Bank deputy manager Sachin Waghmare, and clerk Nitin Lakhole remain lodged in Harsul Jail. Their bail pleas were rejected by the Sessions Court. Many have now approached the High Court seeking relief.

Assets tracked, yet no auction

The EOW has traced the misappropriated funds, recovering Rs 2.51 crore from bank accounts, Rs 59 lakh from a demat account, and Rs 1.76 crore in cash, which has been deposited in a government account. Police have also seized five flats, shops, nine vehicles, and gold ornaments. About Rs 7 crore was spent on lifestyle purchases and foreign travel, the investigation found.

Bank held liable, legal deadlock continues

As per procedure, court permission is required to initiate the auction of seized assets. However, the Sports Department has held the bank accountable for failing to prevent the fraud, and has demanded repayment of the misappropriated amount. Correspondence is reportedly ongoing at the state level. The legal deadlock has thus halted the auction process.