CM says ‘audit’ of VSI is routine request, NCP (SP) cries foul

Maharashtra CM Devendra Fadnavis clarified there is no inquiry against the Vasantdada Sugar Institute, only a request for financial information.

Chief minister Devendra Fadnavis on Tuesday denied reports about inquiry on utilisation of funds by the Sharad Pawar-headed Vasantdada Sugar Institute (VSI) and clarified that no formal investigation has been initiated.

I want to make it very clear that the state government has not started any inquiry against Vasantdada Sugar Institute, CM said. (HT)

Speaking to the media, Fadnavis said, “I want to make it very clear that the state government has not started any inquiry against Vasantdada Sugar Institute. It is a routine request seeking financial information. It is not a probe, but (sugar commissioner) only sought information regarding the funds given to VSI by levying a duty on sugar factories. There is nothing wrong with asking any institute to account for the funds it has received. For example, every year farmers give ₹1 per tonne to the VSI. We have just asked how these funds get utilised. The decision was taken at a recent meeting to review the sugarcane cruising season.”

Meanwhile, Nationalist Congress Party (Sharadchandra Pawar) Member of Legislative Assembly (MLA) Rohit Pawar called the move “politically motivated”, underlining that VSI is one of the most prestigious training institutes catering to the sugar industry in the country, functioning under Sharad Pawar’s guidance.

“The CM’s order to conduct an inquiry into the institute is not a routine process. It shows that after Thane, the BJP has turned its attention to Baramati. Yesterday, Union home minister Amit Shah said in his speech that the BJP does not need crutches, and now the CM has ordered an inquiry into VSI. Is this not an attempt to reduce the dependence on crutches?” the legislator said, hinting that the BJP’s allies were being targeted, referring to NCP chief and deputy chief minister Ajit Pawar, who is on the VSI board of directors.

Baramati in Pune district is the Pawar family’s stronghold, while Thane is the political turf of Shiv Sena leader and deputy CM Eknath Shinde.

In a post on X, Rohit said VSI has played a major role in the development of sugar industry in the state.

Sharad Pawar has not yet reacted to the government’s decision.

Sanjay Kolte, Maharashtra’s sugar commissioner, said, “We generally collect ₹1 per tonne of crushed sugarcane from sugar mills for VSI, and these funds are used for research and development activities. In a cabinet meeting held on September 30, instructions were given to form a committee to check how these funds are being utilised. On Monday, we received the minutes of the meeting, and accordingly, a committee will be formed.”

He denied receiving any complaint over utilisation of funds.

Revenue minister and BJP leader Chandrashekhar Bawankule said the state government had received complaints about the institute, prompting the decision to initiate a probe.

“When the government or the chief minister receives a complaint, an inquiry has to be conducted. There’s nothing to fear if everything is in order. This is not being done deliberately,” Bawankule said, adding that many inquiries were initiated during the Congress and Sharad Pawar’s tenure.

The institute’s governing body includes several senior NCP (SP) leaders such as Ajit Pawar, Jayant Patil, and Dilip Walse Patil, while many sugar mill operators are part of its board. The state government provides ₹5 crore annually to the institute, and sugarcane farmers contribute ₹1 per tonne towards its upkeep. Prime minister Narendra Modi and Congress leader Rahul Gandhi have both visited VSI in the past to study its work in the sugar sector. The institute and Pawar’s contribution to the sugar industry have been appreciated on several occasions.

Established in 1975 by sugarcane growers of Maharashtra, the Vasantdada Sugar Institute—formerly known as the Deccan Sugar Institute—is an autonomous body registered under the Societies Registration Act, 1860, and the Bombay Public Trusts Act, 1950. It is the only organisation of its kind globally, combining academic, research, and extension activities dedicated to the advancement of the sugar industry.