Apart from the minister, the others named in the complaint filed by Janata Dal activist Sanjiv Chimbulkar include Additional Municipal Commissioner Ratnakar Gaikwad, Fisheries Commissioner and former Managing Director MPBCDC MB Appalwar, former deputy General Manager of MPBDC MK Bansod and former deputy secretary, Ministry of Social Welfare, Sports and Cultural Affairs, BV Sonawane. The case will come up for arguments on November 11.

As far as Gholap's role in the above fraud, Chimbulkar has stated that the minister and Gaikwad had visited the offices of the three national corporations in New Delhi in January 1996 to appraise them about thepowerloom project. Gholap had invited the then Union Minister Sitaram Kersi to inaugurate the handing of powerlooms to the beneficiaries at Bhiwandi Taluka. Chimbulkar further states that Gholap was aware of the missappropriation committed by Appalwar and in a reply to the calling attention motion in the State Legislative Assembly by Shiv Sena MLA Baburao Mane, Gholap had stated that there were irregularities but no corruption.

The minister according to Chimbulkar should have informed the authorities about the commission of offences but chose to ignore it.

In his complaint Chimbulkar stated that Appalwar and Bansod had formulated the powerloom project on April 20, 1994 and had submitted the project to the National SC/ST Finance and Development Corporation(NSFDC), New Delhi for 400 units that is 800 powerlooms.

The NSFDC had sanctioned the powerloom project in three phases of 130 units each with each unit having two powerlooms. The complaint further states that Appalwar and Bansod had formulated thesaid project within the financial norm of disbursing Rs One lakh. Whilst formulating the powerloom project, Appalwar and Bansod did not take into account the requirement of the individual beneficiary for purchase of the land, consturction of sheds, supply of electricity by providing seperate poles and transformers etc, the complaint adds.

Chimbulkar further said that the duo had formulated the said project without surveying the market, soliciting advice from financial institutions and consulting technical professionals.

The complaint further states that the MPBCDC had never ventured into the project since its inception and that the duo had implemented the project in a fraudulent manner. Appalwar has flouted all the norms for the purchase of powerlooms and out of the way favouring Sudhir Gandhi of Shivangi Industries who was given the contract. Appalwar without favour power disbursed Rs 8.94 crore to Gandhi without even receiving the said goods and getting them installed.

The complaint also states thatSonawane had given a false affidavit on June 3, 1996 before the Bombay High Court stating therein that the powerloom project was without any blemish. Chimbulkar in the complaint further adds that the affidavit was filed by Sonawane to save himself and the accused from punishment and that he was aware of misappropriation of funds of the Corporation. Sonawane who also held additional charge as managing director of the corporation had sanctioned Rs 2.83 crore to purchase 283 powerlooms from Sudhir Gandhi. Apart from this Sonawane had sanctioned the said purchase without calling of tenders.

Gaikwad who was then the secretary of the Social Welfare Ministry which was then headed by Ramdas Athavale had given a favourable report to Appalwar after an inquiry alleging corruption charges was initiated against him. Gaikwad has also been charged of deliberately shielding the Appalwar, Bansod and Sonawane and had also failed to inform the police about the commission of the offences.