Three officials of a Sangli-based poultry firm have been arrested after farmers from several districts in Maharashtra alleged that the company duped them after persuading them to invest in Kadaknath chicken farming.
Farmer leader Raju Shetti alleged on Tuesday that the accused had links with Maharashtra minister Sadabhau Khot. Khot denied the allegation.
The black chicken meat of 'Kadaknath' breed is popular in Madhya Pradesh and Chhattisgarh, with a kilogram of it selling for as high as Rs 900.
Sangli-headquartered Maharayat Agro India Pvt Ltd is accused of cheating farmers out of their investment after promising to buy-back fully-grown chickens, and eggs.
So far, cases have been registered against the firm in Sangli, Satara, Pune, Kolhapur, Palghar, Nashik and Aurangabad, said assistant police inspector Shankar Salgar of Pune's Dattawadi police station.
Pune police earlier this month registered a case against the firm's founder-director Sudhir Mohite and other directors Hanumant Jagdale and Sandip Mohite for allegedly duping over 100 farmers of more than Rs 3 crore, Salgar said.
The Islampur police station in Sangli has registered a case against the firm's directors for cheating farmers of over Rs 10 crore, another official said.
"Around 600 to 700 farmers from various districts have approached us and filed their complaints," he said.
So far three men -- Sandip Mohite, Hanumant Jagdale, and Pritam Mane, an accountant in the firm's Pune office -- have been arrested. Sudhir Mohite and two other accused are still at large and the case has been transferred to Sangli Police's Economic Offences Wing (EOW).
One of the complainants, Nilesh Ambede, alleged that he invested Rs 2.5 lakh in the company's scheme but it did not deliver the chicks as promised. He also claimed the company had promised that it would buy back full-grown chickens at Rs 300 per bird.
Based on his complaint, the Pune police registered a case against the firm's officials under Indian Penal Code sections 409 (criminal breach of trust) and 420 (cheating)
Salgar said the firm - previously known as Rayat Agro India Ltd - was set up at Islampur in Sangli in 2017. It came up with various schemes, seeking investments from farmers. In return, it promised to provide 200 Kadaknath chicks.
Farmers were supposed rear the birds, and the firm promised to buy the eggs at Rs 20 to Rs 60 apiece and full- grown birds for Rs 600 to Rs 1,200.
"Some farmers complained that they paid the investment amount but did not receive any chicks, some alleged that the special food for chicks, as promised by the firm, was not delivered," the official said.
"It seems that the firm's plans were impractical. No egg brand sells eggs at Rs 20 to Rs 60 per piece," Salgar said.
Shetti, a former MP, alleged that more than 10,000 farmers across the state were hit by the scam.
"We are seeking an ED probe to track the cash flow as the firm's balance sheet shows only Rs 95 crore," he said.
Shetti also alleged that accused in the case were connected to state minister Sadabhau Khot, his former party colleague.
Denying the allegations, Khot said Shetti had not been able to come to terms with his defeat in the Lok Sabha polls.
"If my son inaugurated some outlets of the firm (as alleged by Shetti) and if that firm faces any issue later, how is my son responsible?" Khot asked.
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