The complainant in the ₹25,000 crore scam in the Maharashtra State Co-operative (MSC) Bank has alleged that its directors intentionally sold 11 Sahakari Sakhar Karkhanas (cooperative sugar factories) at rates below the reserve prices, in violation of rules.

“The directors gave approval to such sale only with a view to avail wrongful gain to the purchasers,” activist Surinder Arora told the Mumbai police.

The ED is conducting money laundering investigations into the allegation.

According to Mr. Arora, decisions were taken only to extend benefit to the buyers, who were having personal or political nexus with the Board of Directors. “Not only the SSKs [Sahakari Sakhar Karkhanas] were sold below the reserve price, but also no consent of the borrowing units were sought before resorting to such an action,” he alleged.