Explained: The 'Land Scam' That Stung Ajit Pawar's Family

A political controversy stung Deputy Chief Minister Ajit Pawar's family last week over a land deal signed by a company owned by his son, landing the Nationalist Congress Party (NCP) in legal trouble and at odds with its ally BJP in Maharashtra.

The government land in Pune at the centre of the controversy is reserved for Dalits, which led to "land theft" charges against Parth Pawar's Amadea Holdings LLP. Another charge was of a stamp duty waiver soon after the deal, which helped him save crores and led to allegations that he received an undue advantage since he is a minister's son.

With the opposition trying to turn it into a national issue, the BJP resorted to firefighting mode and opened an inquiry. Left cornered, Ajit Pawar publicly denied any role. He said his son was unaware of the legal implications and confirmed that the deal has now been scrapped.

The 'Scam' Charges

The deal that has caused a stir in Maharashtra's politics involves Amedea Holdings LLP, owned by Parth Pawar. The company had purchased the 40-acre plot in Pune's upscale Mundhwa area for around Rs 300 crore, despite its market value being a whopping Rs 1,804 crore, raising allegations of undue concessions given to the minister's son.

The firm also received a stamp duty waiver just two days after the deal, citing that a data centre could come up on the land. The company paid just Rs 500 as stamp duty on the Rs 300 crore transaction.

The land fell under the 'Watan' category reserved for the Mahar community, a Scheduled Caste. Such land cannot be sold under the Bombay Inferior Village Watans Abolition Act, 1958, without government permission. Calling this an "office of profit" case, social activist Anjali Damania demanded Ajit Pawar's resignation as the deputy chief minister.

How It Erupted

The Opposition upped the ante on the government last week after the issue exploded. It targeted the Pawars and the state government, demanding that the land be returned to the government and a criminal case be filed.

Shiv Sena (UBT) leader Ambadas Danve alleged Amedia had a capital of just Rs 1 lakh and said, "The firm has started preparations to build an IT park and data center right in Koregaon Park (Pune), where real estate prices are sky-high. How was this possible for a company with a capital of 1 lakh (especially when it's Mahar Watan land)?" Questioning the stamp duty waiver, he sought to know why the company's proposal was accepted despite lacking prior experience.

The controversy snowballed into a national issue with Leader of the Opposition Rahul Gandhi training his guns at the BJP-ruled government in Maharashtra. Gandhi, who had earlier accused the BJP of "vote theft" in other states, called it a "land theft by the government." It was not just "robbery" of land reserved for Dalits but also a "legal stamp of approval on the theft", he said, referring to the stamp duty waiver.

Targeting Prime Minister Narendra Modi, he asked, "No regard for democracy, nor for the public, nor for the rights of Dalits. Modi ji, your silence speaks volumes-Are you staying silent for this reason, because your government is propped up by those very looters who usurp the rights of Dalits and the deprived?"

What the Pawars said

Ajit Pawar, on Friday, said his son Parth and nephew Digvijay Patil, a partner in Amadea LLP, were not aware that it was government land and denied that his office had any knowledge about the transaction. They thought that the land was within the bounds of law, he clarified, adding that they acted as soon as they became aware of the deal.

"The sale deed should not have been executed. The registrar should not have done it. When I learnt of it, I said whoever is involved, it should be examined properly," he said, claiming that procedural lapses by a tehsildar have already been identified.

He also advised his son to treat this as a learning experience and examine all proposals thoroughly in the future, even if he needs to pay a fee for it. Claiming he had no role in the deal, he further remarked, "When your children grow up, they do their own business."

Veteran politician Sharad Pawar, who now heads a breakaway faction of the NCP that he had founded in 1999, also called for an inquiry into the land deal by his grandnephew's firm so that the truth can be unravelled and placed before the public.

"The Chief Minister has publicly said that the matter is serious. So, he must conduct an inquiry and place the facts before the people," Pawar Senior said last Saturday.

BJP Takes On Ally

Chief Minister Devendra Fadnavis described the charges as "serious" and ordered an inquiry on Thursday. Asserting that his government won't tolerate such irregularities, he said there was no question of saving anyone.

"If there are any irregularities, action will definitely be taken against them. Our coalition government believes in transparency; this matter will be probed to determine whether there are any irregularities, and if so, strict action will be taken," Fadnavis said.

The BJP also countered ally Ajit Pawar's remarks that children do their own business when they grow up. "Children can grow up, but they should be obedient. What more can I say about it?" quipped BJP MP Narayan Rane, a vocal critic of Pawar in the past.

Government Action

Ajit Pawar said that an FIR has been filed against three persons who had visited the registrar's office to sign the documents, including Patil. His son wasn't among those three.

A high-level panel was formed by the Revenue and Forest Department on Friday to probe the alleged irregularities. Headed by Additional Chief Secretary (Revenue) Vikas Kharge, the panel would examine if the transaction led to any financial loss to the government and submit its report within a month.

Officials said the committee will find out how the land transaction occurred and if any official or other individual indulged in any procedural violation. It will also recommend ways to prevent such irregularities in the future.

Parth Pawar's company will now have to cough up double the stamp duty, amounting to Rs 42 crore, officials added. A major portion of the amount is the 7% stamp duty on which the company had sought an exemption, one of his partners in Amadea has been informed. This includes 5% duty under the Maharashtra Stamp Act, 1% local body tax, and 1% metro cess. Besides, the cancellation deed would cost another 7%.