Major Fraud Case Against Radhakrishna Vikhe Patil
• ₹9 Crore Loan Waiver Scam Rocks Sugar Factory
• Rahata Court Orders Criminal Probe
• High Court Ruling Overturned by Supreme Court
Unmesh Gujarathi
Sprouts News Exclusive
In a significant development, a criminal case has been registered against Maharashtra’s Water Resources Minister Radhakrishna Vikhe Patil, former Minister Annasaheb Mhaske, and 52 others. The case pertains to a ₹9 crore bogus loan waiver scam linked to the Padmashree Vitthalrao Vikhe Patil Cooperative Sugar Factory in Pravaranagar, Rahata Taluka.
According to Balasaheb Vikhe, an aggrieved sugarcane producer and factory member, the factory’s board of directors fraudulently availed loans under the names of farmers between 2004 and 2007. Instead of utilizing the funds for agricultural purposes, the directors allegedly misused the money for personal gain. Although a complaint was initially filed at the Loni Police Station, it was not accepted, compelling Vikhe to approach the First Class Judicial Magistrate’s Court in Rahata.
•Radhakrishna Vikhe Patil fraud case: Court Orders Investigation Under Criminal Procedure Code
Following Balasaheb Vikhe’s appeal, the Rahata Court ordered the registration of a criminal case under Section 156(3) of the Criminal Procedure Code. The factory directors, however, challenged this decision at the Aurangabad Bench of the Bombay High Court, which overturned the lower court’s directive.
Unwilling to relent, Vikhe escalated the matter to the Supreme Court of India through Criminal Appeals 1483/1484/2025 and Special Leave Petitions 8335, 8336/23. In a major setback for the accused, the Supreme Court reinstated the Rahata Court’s order, leading to a fresh FIR against the accused at Loni Police Station on April 28, 2025.
•Radhakrishna Vikhe Patil case: Fraud in Cooperative Sugar Factory Loan Waiver Scheme
The ₹9 crore fraud dates back to the period when Radhakrishna Vikhe served as a Minister of State and a director of the sugar factory. In 2009, under the Agricultural Loan Waiver Scheme introduced by the Maharashtra Government, relief was intended exclusively for individual farmers, not for cooperative societies or institutions.
Despite these guidelines, Minister Vikhe allegedly misused his position to pressure two nationalized banks to submit loan waiver proposals in favor of the cooperative sugar factory. Bank documents falsely indicated that the loans had been distributed directly to farmers, with fake beneficiary lists attached.
An audit later revealed discrepancies. When the Maharashtra Government sought detailed bank statements for each beneficiary, neither the banks nor the factory could produce valid documentation. These findings exposed the violation of the 2009 Agricultural Loan Waiver Scheme guidelines.
•Radhakrishna Vikhe Patil fraud case: Supreme Court Upholds Lower Court’s Decision
In the aftermath of the audit, Balasaheb Vikhe pursued the matter legally. Despite the Aurangabad Bench’s initial relief to the accused directors, the Supreme Court upheld the Rahata Court’s original order, thereby directing registration of a criminal case under Section 156(3) of the CrPC.
As per the Supreme Court’s decision, an FIR has been registered against Minister Radhakrishna Vikhe, former Minister Annasaheb Mhaske, and other directors under Sections 415, 420, 464, 465, 467, 471, 34, and 120B of the Indian Penal Code.
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• Radhakrishna Vikhe Patil case Impact on Agricultural and Urban Development Sectors
This ₹9 crore scam highlights serious lapses in governance and misuse of cooperative institutions, an issue that carries implications for both agricultural finance reforms and urban development policies. Industry experts have pointed out that misuse of government-backed loan waivers undermines trust among stakeholders and jeopardizes future agricultural financing models.
Sprouts News will continue monitoring this high-profile case, which not only affects cooperative sector credibility but could also influence upcoming policy reforms aimed at strengthening transparency in cooperative societies.
