MEIL’s ₹56 Cr Fine Slashed to ₹17 Lakh
• Bawankule’s ‘Special Favour’ Sparks Uproar
• Corporate Giant Walks Free—99% Fine Waived
• Political Links Behind MEIL’s Penalty Cut?
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Hyderabad-based MEIL, accused of illegal mining in Maharashtra, received a 99% penalty waiver from Revenue Minister Chandrashekhar Bawankule—reducing a ₹56 crore fine to ₹17 lakh. The Sprouts News Investigation Team (SIT) reveals political favoritism, electoral bond links, and massive tender allocations, sparking demands for a full-scale independent inquiry.
MEIL Gets 99% Penalty Waiver Despite Illegal Mining Allegations
In a startling revelation made through a starred question in the Maharashtra Legislative Assembly, it has come to light that Hyderabad-based infrastructure giant Megha Engineering and Infrastructures Ltd (MEIL) was granted a dramatic reduction in penalties by State Revenue Minister Chandrashekhar Bawankule. The company, which is already under scrutiny for allegedly donating hundreds of crores to the BJP through election bonds, had been fined ₹56.98 crore for illegal minor mineral excavation. However, the final penalty imposed stood at a mere ₹17.28 lakh — a staggering 99% reduction.
This disclosure, brought into public attention by the Sprouts News Investigation Team (SIT), has raised serious concerns about the misuse of ministerial discretion, especially when the state treasury is reportedly under fiscal strain. The waived amount—over ₹55 crore—has triggered allegations of preferential treatment, political quid pro quo, and opaque decision-making.
Click Here To Download the News Attachment
Illegal Mining Linked to Palakhi Route Project
The penalty stemmed from unauthorized mineral extraction conducted by MEIL during the construction of the Shegaon–Pandharpur Palakhi Dindi route. BJP MLA Babanrao Lonikar raised the issue in the Assembly, demanding accountability.
According to Bawankule’s written response, the Paratwada Tehsildar had imposed a penalty of ₹55.98 crore, while the Additional Collector of Jalna levied an additional fine of ₹38.70 crore. These penalties were based on violations of mining and environmental regulations.
MEIL, however, appealed against the Tehsildar’s decision to the Additional Divisional Commissioner of Chhatrapati Sambhajinagar, who dismissed the appeal. Subsequently, the company sought relief directly from the Revenue Minister, who reduced the payable amount to just 1% of the original fine.
Revenue Minister Overrules Departmental Decisions
Despite two official orders confirming the magnitude of the violations, the Revenue Minister exercised special powers to reduce the fine. MEIL was allowed to pay only ₹17,28,498, which the company duly deposited, as confirmed by Bawankule in his Assembly response.
This extraordinary concession—granted outside the standard legal process—has prompted the Sprouts News Investigation Team (SIT) to investigate potential irregularities in the use of ministerial discretion and the absence of transparent governance. Bawankule also admitted that appeals in similar matters are still pending with the government, further highlighting the inconsistency in administrative decisions.
Opposition Alleges Favoritism and Corruption Links
The waiver granted to MEIL has reignited political tensions. Senior NCP (Sharad Pawar faction) leader Dr. Jitendra Awhad accused the BJP-led Maharashtra government of shielding “corporate sons-in-law” like MEIL and Navayuga Engineering.
Awhad alleged that MEIL, which has bagged multiple high-value contracts including the Borivali-Ghodbunder tunnel and the Gaymukh-Fountain corridor, enjoys preferential treatment in tender processes. He further stated that the firm donated ₹900 crore to the BJP via electoral bonds — a claim previously highlighted by the Supreme Court while questioning the legality of the scheme.
According to Awhad, “This is not just misuse of power. It shows how far MEIL’s political reach extends. How can a firm penalized with ₹56 crore get away by paying just ₹17 lakh unless there is high-level political blessing?”
MEIL’s Unchecked Growth Amid Massive Tender Allocations
In a broader critique, Awhad claimed that over ₹5 lakh crore worth of tenders have been awarded in Maharashtra over the past year alone, with a large share allegedly going to politically connected firms like MEIL. The Sprouts News Investigation Team (SIT) has confirmed that MEIL continues to secure public infrastructure projects across sectors, raising questions about tender transparency and conflict of interest.
The Supreme Court, in recent hearings, had asked whether a ₹3,000 crore scam linked to contracts could be reversed, cautioning the government of potential legal action. Despite such judicial warnings, Awhad claims that the state has taken no corrective steps, thereby “granting legitimacy to corruption.”
Public Interest and Legal Implications at Stake
This case has brought to the fore critical issues around accountability, transparency, and fair governance in awarding public contracts and levying penalties. By overriding departmental findings and judicially reviewed decisions, the Revenue Minister’s intervention sets a controversial precedent.
Experts consulted by the Sprouts News Investigation Team (SIT) suggest that this matter deserves immediate scrutiny by the Comptroller and Auditor General (CAG) and the Lokayukta, especially given the large sums of public revenue potentially compromised. Further, the Election Commission may also be compelled to re-examine MEIL’s role in electoral bond funding and its impact on policy favoritism.
Also Read: Isha Foundation Moves Supreme Court to Restrain Nakkheeran’s Defamatory Coverage.
A Case Study in Corporate-Political Nexus?
The MEIL episode serves as a high-profile example of the growing nexus between corporate powerhouses and political influence. When a company penalized for illegal mining walks away with a 99% fine reduction, public trust in the justice system and governance takes a hit.
Sprouts News Investigation Team (SIT) will continue monitoring the developments in this case and will soon publish internal documents, tender records, and legal correspondence linked to MEIL’s recent projects. As this saga unfolds, stakeholders across the political and legal spectrum are demanding a full-scale independent inquiry into how such a massive waiver was approved — and who stood to gain from it.
