According to sources with knowledge of the situation, a committee led by Judge BS Vastradmath has started looking into claims of financial theft at Laila Sugars in Khanapur taluk in the Belagavi district, which is leased by Khanapur BJP MLA Vithal Halgekar.

The state government last week established an investigative team headed by Belagavi District Principal and Sessions Court Judge BS Vastradmath in response to a complaint made by former Khanapur Congress member Anjali Nimalka.

Anjali, the previous assembly representative for the constituency, said that Halgekar was granted permission to operate Laila Sugars on a ten-year lease upon her election to the legislature. He loaned the sugar mill ₹600 crore from his own company, Shri Mahalakshmi Sugars Private Limited. He is accused of embezzling the money after the loan transfer.

Thousands of farmers, mostly those who grew sugarcane, created accounts and put money in the MLA’s company out of confidence, according to Anjali. The MLA then moved the money to the sugar mill and was accused of embezzling it. “I brought the matter to the government’s attention and filed a complaint against MLA Halgekar to prevent innocent farmers from becoming financial victims,” Anjali said.

All members of the sugar mill management committee attended the meeting arranged at the factory’s meeting hall and pledged cooperation with the inquiry, according to Judge Vastradmath, the leader of the investigating team who toured the sugar mill and reported to the media. “Due to the assembly session, the plant chairman—who also happens to be a legislator—was unable to attend the meeting. The judge said, “He might attend the next meeting.”

In response, Halgekar informed HT during the assembly session’s lunch break that he had notified the investigative committee of his absence and had promised to show up for the hearing the next week. He said that Anjali’s charges about the alleged theft of money are unfounded and untrue. “I’m certain that I’ll come out on top in any investigation,” Halgekar said.

Ramesh Jarkiholi, the Gokak BJP MLA and former minister, filed six candidates for the assembly election; Halgekar is the only one standing for the seat for the first time.

Within 30 days, the committee will provide its investigative findings to the government, according to Judge Vastradmath.