Benami Property Case: Income Tax Appellate Tribunal Grants Relief to Maharashtra Deputy CM Ajit Pawar

The Income Tax Appellate Tribunal (ITAT) has provided significant relief to Maharashtra's Deputy Chief Minister and his family in a case involving allegations of benami property ownership. The case dates back three years when the Income Tax Department attached assets valued at ₹1,000 crore, citing suspicions of benami ownership. The investigation also included Jarandewhar Sugar Mill, which had been earlier attached by the Enforcement Directorate in connection with the MSCB scam and alleged money laundering case.

NCP leader Ajit Pawar, who was under investigation by the Income Tax (I-T) Department and the Enforcement Directorate (ED), parted ways with his uncle Sharad Pawar's party last year to join the government as Deputy Chief Minister. On Thursday, he was sworn in again as Deputy CM in the BJP-led Maharashtra government. The Income Tax Appellate Tribunal, in its ruling, dismissed the I-T allegations against Pawar and others, also granting him a clean chit in the Jarandewhar Sugar Mill case.

A Mumbai-based company acquired the Jarandewhar Sugar Mill through an MSCB auction and later leased it long-term to a firm associated with Ajit Pawar's family. Addressing the case, the Income Tax Appellate Tribunal stated, "It cannot be inferred based on the position held by Ajit Pawar in Maharashtra State Co-operative Bank or any other company unless it is proved that funds were transferred by him to acquire the benami property."

In 2022, the I-T adjudicating authority ordered the release of Jarandeshwar Sahakari Sugar Karkhana and three other properties attached under the Benami Transactions (Prohibition) Amendment Act, 2016. The case was later taken to the appellate tribunal. However, the Enforcement Directorate retained its attachment of the mill under the Prevention of Money Laundering Act, as confirmed by the adjudicating authority.