"No cognisable offence is made out against Bhujbal and his family and hence there is no need to file FIR in the matter," EOW said in an affidavit filed before the High Court.
The affidavit was filed in reply to a petition filed by MET's co-founder and chairman Sunil Karve alleging that the PWD minister and his family had misappropriated funds and misused properties of the trust.
Karve had sought CBI probe against Bhujbal and his family stating that the police would be biased.
A division bench of Justices A S Oka and Shrihari Dhavare had on the last hearing asked the police to state whether it would file an FIR in the matter.
The bench was earlier informed by EOW that Karve's complaint was forwarded to the office of the charity commissioner as it seemed like an internal dispute between members of the trust.
The EOW in its affidavit filed today has also challenged the maintainability of the petition and said the petitioner has an alternate remedy of filing private complaint.
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The bench however admitted the petition and posted it for final hearing on August 21.
Sayaji Nangre, Karve's counsel, argued that trust funds to the tune of Rs 177 crore were used by Bhujbal family for personal use in addition to misusing the trust property.