Ajit Pawar Cleared of ₹1,000-Crore Benami Property Allegations by Tribunal

In a major relief to Maharashtra Deputy Chief Minister Ajit Pawar, the Income Tax (I-T) Department has cleared properties worth over ₹1,000 crore that were seized in a 2021 raid.

This decision came after the Prevention of Benami Property Transactions Appellate Tribunal dismissed charges that Pawar and his family owned benami properties.

The ruling was issued a day after Pawar took oath as the Deputy Chief Minister in a ceremony alongside Eknath Shinde, marking a new chapter in the state’s government formation.

The Background of the Case

The controversy began with an October 2021 raid by the Income Tax Department, targeting several locations linked to Ajit Pawar and his family.

The raids were conducted under allegations of holding benami (proxy) assets. During the investigation, properties including a sugar factory in Satara, a flat in Delhi, and a resort in Goa were seized.

However, the investigation found that none of these properties were registered under Ajit Pawar’s name.

Tribunal Dismisses the Charges

In a decisive ruling, the Prevention of Benami Property Transactions Appellate Tribunal dismissed the benami property claims, citing a lack of substantial evidence.

The tribunal found no proof linking Ajit Pawar or his family members to the alleged benami transactions. The properties in question were paid for using legitimate financial methods, the tribunal concluded.

The tribunal stated, “There is no evidence to suggest that Ajit Pawar or his family transferred funds to acquire benami properties… it’s not that Ajit Pawar, Sunetra Pawar, and Parth Pawar transferred funds to procure benami properties.”

Advocate Prashant Patil, who represented Ajit Pawar and his family in the case, emphasized that the charges lacked any legal basis.

He pointed out that the transactions related to these properties were done through lawful channels, including the banking system, with no irregularities found in the records.

The I-T Department’s Investigation

The Income Tax Department’s investigation into Ajit Pawar began in October 2021, when several properties were seized under the Prohibition of Benami Property Transactions Act (PBPTA).

The properties, worth over ₹1,000 crore, included a sugar factory in Satara, a flat in Delhi, a resort in Goa, and several land parcels spread across Maharashtra.

Despite the raids, the department was unable to establish a direct connection between the properties and Pawar’s name.

The department had initially claimed that these assets were acquired through benami transactions. However, after extensive investigation, the tribunal rejected these allegations and ruled in favor of Pawar and his family.

Political Implications and Timing

The tribunal’s ruling came at a politically significant moment, as Ajit Pawar had just been sworn in as Maharashtra’s Deputy Chief Minister.

His oath of office followed a period of political deadlock in the state’s government formation, following the landslide victory of the Mahayuti alliance in the state Assembly elections.

The timing of the tribunal’s decision, just after Pawar’s new appointment, has been seen by some as a major political development, offering him relief and further legitimacy in his role.

Ongoing Legal Developments

On November 5, 2024, the tribunal reaffirmed its decision by rejecting an appeal filed by the Income Tax Department. This ruling cleared all the properties that had been previously seized.

The legal battle surrounding the benami charges seems to have come to a close, at least for now, with the tribunal’s verdict standing firm.

The Properties Involved

The seized properties included some significant assets, most notably the Jarandeshwar Sugar Factory in Maharashtra’s Satara district.

In addition, the I-T Department had seized an official premises in Mumbai, a flat in Delhi, and a resort in Goa. Land parcels at 27 different locations across Maharashtra were also attached during the investigation.

In 2021, the Income Tax Department had also uncovered unaccounted income amounting to ₹184 crore after conducting raids on two real estate business groups in Mumbai.

These entities were allegedly linked to Ajit Pawar’s relatives, further intensifying the investigation. However, the tribunal ruled that there was no evidence to implicate Ajit Pawar or his family in any illegal activity related to these assets.

A Win for Ajit Pawar

The ruling by the Prevention of Benami Property Transactions Appellate Tribunal marks a significant victory for Maharashtra’s Deputy Chief Minister Ajit Pawar.

With the dismissal of the benami property allegations and the clearance of seized assets, Pawar and his family have been absolved of the charges.

This decision comes at a time when Pawar is actively involved in the state’s political landscape, providing him with much-needed relief and legal validation.