Pune’s expanding industrial belts have brought investment, jobs and a vast manufacturing ecosystem — but they have also created an opportunity for a parallel network of local strongmen who seek to use their influence, muscle power, political clout or exploit regulatory complaints to extract money from businesses. Their demands range from a hafta — protection money paid at regular intervals, takka — which denotes a percentage share of a company’s business or profits — to contracts for scrap, labour, transport and other services.The issue assumes significance after the Talegaon-Chakan belt, which is one of Pune’s largest industrial hubs, was recently in the news over persistent infrastructure problems, including traffic congestion, poor roads and power disruptions. Beyond these challenges, industries face the threat posed by local strongmen with vested interests who create a hostile environment for industries. The threat is particularly visible in the Talegaon-Chakan and Ranjangaon-Shirur-Shikrapur industrial corridors, where large multinational corporations which contribute to global supply chains along with major Indian companies and thousands of smaller enterprises operate alongside a sizable network of local contractors and service providers.The Maharashtra Industrial Development Corporation (MIDC), a state government agency for industrial development, has played a central role in this expansion by acquiring land, developing infrastructure and creating planned industrial estates. The Talegaon-Chakan belt has emerged as a major automobile and auto-component hub because of its strategic location between Pune and Mumbai. The Ranjangaon-Shirur-Shikrapur corridor, along the Pune-Ahmednagar highway, has a more diverse industrial base comprising consumer goods, engineering, automobile and other industries. It is around this concentration of industrial activity that local operators target businesses.Hafta, takkas and contractsThe Indian Express visited these industrial corridors to talk to company functionaries who have faced extortion threats in various forms. A security supervisor at an engineering company said, “Earlier this year, when the general shift of our company was ending, a local goon entered the logistics area. When he was questioned, he said he was the local ‘bhai’. He started attacking a construction supervisor and demanding either a construction contract or a hafta. If it wasn’t done, he threatened to stop the company work. He said construction contracts were being given to outsiders and not locals like him. This was not the first time he had made the demand. He has been calling company officials for the same. We immediately approached the local police station and an FIR was registered.” The police subsequently arrested the man.In another case, the demand was for a regular payment rather than a contract. A 40-year-old owner of an industrial printing workshop said a local goon threatened to kill if he was not paid a hafta of Rs 20,000 a month. “I have been calling you repeatedly but you don’t call back. You seem to have forgotten me. Isn’t your life dear to you?” read a threat message sent to him. The proprietor then approached the police and an FIR was registered leading to an arrest.Another route involves presenting oneself as a person raising regulatory concerns. For one chemical products company, the extortion started with an email from a man claiming to be a lawyer and an RTI activist. The email alleged quality issues and tampering of records by the company. “When we called the number, the person who answered, sought a meeting with our top management,” said a senior HR executive of the company. “When some senior officers met him, the so-called lawyer demanded pach takka (five per cent) of our profits as protection money. Later he started negotiating and started asking for a yearly amount of Rs 25-30 lakh. As the threats continued, the company approached the police and the man was arrested.”Police and industry representatives say self-proclaimed social and RTI activists can also become a source of pressure. Complaints or threats of complaints relating to environmental permissions, safety standards, licences and other regulatory compliances can be used to put companies under pressure. In some cases, this can be accompanied by negative publicity on social media, messaging platforms or local news portals.Story continues below this adPolice push for immediate reportingSandeep Singh Gill, Pune Rural Superintendent of Police said, “We have registered cases of extortion as and when industries come forward with complaints. We have kept a watch on these elements who resort to such acts. As a preemptive measure, we have stepped up patrolling industrial areas, we are holding meetings of representatives from clusters and we conduct security audits. We have held meetings with representatives from industrial clusters in Khed, Baramati and Ranjangaon and the others will happen soon.”A senior police officer said, “Our stand is very clear: if an industrial unit is targeted, it should immediately report the matter to us. We will register an FIR and launch a probe. But, as we have observed, some companies do not approach us immediately, choosing instead to negotiate or resolve the matter on their own. While this may work in some cases, in most instances the extorter only increases the pressure. In other cases, companies approach us and we advise them to file an FIR. The local management then says it will consult its legal team, which may be based anywhere in India or at the company’s global headquarters. If the legal team does not respond promptly, the matter remains unresolved. Meanwhile, the extortion attempt can escalate further, potentially leading to vandalism and violence.”Another officer added, “Local muscle and miscreants seek contracts across businesses like earthmoving, construction labour and head-loading, security, transport, hospitality and, most significantly, scrap contracts. Extortionists find every pretext to demand money, from “your wall is a few inches beyond your land” to “your pollution treatment compliance is inadequate.” For companies, the problem is that a commercial demand can quickly become an attempt to intimidate or disrupt operations when the demand is rejected.Deputy Commissioner of Police Rohidas Pawar told The Indian Express that the Pimpri-Chinchwad Police Commissionerate has set up the Industrial Grievance Redressal Cell in March 2023 to protect businesses and resolve their problems. “Besides, we have also appointed a special officer in the form of an ACP to head the cell,” DCP Pawar said.Story continues below this adIn the last three and half years, the police have registered 51 offences primarily related to extortion and arrested 110 individuals.DCP Pawar said they regularly hold meetings and interactions with industrialists in MIDC areas under them. “Police Commissioner Vinay Kumar Choube has been holding interactions and reaching out to industrialists to address their problems,” he said.The police said they have also provided separate phone numbers and email IDs to industrialists to lodge complaints.The road aheadPrashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), which represents diverse industrial interests, said, “Industries are often apprehensive about registering an FIR as they have to continue operating within the same local ecosystem. At the same time, police need a formal complaint to take action. Both concerns are understandable. However, resolving this issue requires a permanent forum where multiple agencies and stakeholders meet regularly and make sustained efforts. MCCIA has provided such a platform, with various government departments and stakeholders participating. What is needed now is consistency and continuity in these efforts.”Story continues below this ad“The challenge for Pune’s industrial ecosystem, therefore, extends beyond individual extortion demands. It is the emergence of local operators who seek to convert proximity, local influence and access to industrial activity into leverage over companies — whether through contracts, payments, regulatory complaints or threats. For an industrial base increasingly central to Pune’s economy, containing this parallel pressure network is becoming an important part of maintaining a secure business environment.” said a retired senior officer from the MIDC.In Chakan MIDC area, extortionists and other local goons have been threatening industrialists who do not lodge complaints fearing reprisals. Industrialists say organised racketeering is the bane of the Chakan MIDC area. Though not many come forward to lodge complaints of threat from goons, some do dare to step forward to take on troublemakers.Both local industries as well as foreign companies have faced the brunt of criminal gangs. The situation had turned so bad that in 2018 a German Consul-General had met the Pimpri-Chinchwad police commissioner and sought strong action against persons attempting to strongarm firms.Earlier this month too, an extortion case which had come to light, highlighting the deep-rooted problem in Chakan area. A firm had approached the police alleging that some people in the name of Mathadi were threatening them to make payment or face disruption in operation.Story continues below this adThe firm had sought steps from the police to ensure the safety of its employees, premises and day to day operations. The firm alleged that such activities had become common and were affecting their daily operations.In October 2024, an individual who had faced charges under MCOCA, threatened an industrialist and demanded Rs 10 lakh protection money if he wanted to continue operating in Chakan. After the industrialist approached the police, Pimpri-Chinchwad Police Commissioner Vinaykumar Choube held a meeting and promised to take stern action against the perpetrators.The Chakan Industrial Association said such cases now occur on and off. “A few years ago, such open threats for protection money or to get various contracts were common. In recent years, these cases have dropped, following stern police action,” said Shantanu Kulkarni, president, Chakan Industrial Association.However, one industrialist said, “The threats have actually not come down but are not reported. Everyone fears for their life. Industrialists do not want to invite unnecessary trouble. They want to focus on their operations, their work and their growth. Police cannot provide protection for everyone 24 hours a day. These goons keep threatening us in different forms. They keep demanding monthly protection money. They want us to give them company contracts or take their workers. Some operate in the name of mathadi (loaders), others operate on their own.”Story continues below this adIn the neighbouring Pimpri-Chinchwad-Bhosari Industrial area too, individuals and illegal mathadi organisations intimidate and collect protection money from industrialists, say industrial organisations.Abhay Bhor, president of the Forum for Small Scale and Large Scale Industries Association, said, “Industrialists, executives and even workers are constantly under threat in Pimpri-Chinchwad-Bhosari Industrial belt. Organisation rackeeters have been calling the shots for years with police not being able to take effective steps.”Bhor said some of these individuals who threaten industrialists for protection money and contracts roam freely in tempos and rickshaws, drink alcohol on roads and junctions and threaten industrialists and workers to pay up or face consequences. “A woman industrialist recently told us about some goons threatening her but she did not lodge complaints fearing reprisal.”Sandeep Belsare, president of Pimpri-Chinchwad Small Scale Industries Association, said people operating illegal mathadi unions have become a major headache. “While there is a mathadi board set up by the government, there are over 100 illegal mathadi unions set up by various persons claiming allegiance to political parties. These illegal organisations make all sorts of threat to industrialists and collect huge sums of money,” Belsare said.Story continues below this adBhor said besides industrialists, even workers, especially those working in night shifts, are interrupted by criminals and forced to pay up. “This generally happens in the first few days of a month when workers get their wages. The workers heading home in the night are stopped and forced to pay up. They have no choice as there are no police personnel in MIDC area during the night,” he said.Bhor and Belsare said the state government, police force, MIDC, and Pimpri-Chinchwad Municipal Corporation (PCMC) must launch a joint special action plan to ensure a secure environment and create a “Fear-Free MIDC”.“The industrial area faces several problems like rising crime, thefts, demand for “protection money,” drug sales, harassment of female workers, and industrial encroachments on public roads in Bhosari MIDC area.The Bhosari MIDC consists of over 5,000 plot owners and employs an estimated 300,000 to 400,000 workers from Maharashtra and other states. The area spans 22 blocks with roughly 76 km of internal roads. Accessible from four entry points — Bhosari, Nigdi, Chinchwad, and Nashik Phata — this industrial zone is geographically spread out and highly sensitive from a security standpoint.Story continues below this ad“Entrepreneurs and workers frequently report mobile phone snatches, theft of material from vehicles, workers getting mugged, illegal businesses, narcotics sales, and nighttime public drinking. Suspicious individuals are often spotted wandering the area during late-night and early-morning hours. Business owners state that criminals often ride triple-seat on motorbikes to snatch phones, threaten security guards, commit thefts by taking advantage of dark spots or non-functional streetlights, and rob commuting workers,” Bhor said.During festivals, gangs forcibly demand donations, intimidate those who refuse, and pressure company representatives under the guise of protection money, Bhor and Belsare said.Due to fears of retaliation and ongoing harassment after filing complaints, many business owners hesitate to approach the police officially. To address this, the police department must establish a confidential complaint system, a dedicated helpline, and a complainant protection framework, providing regular status reports on actions taken, the Associations said.Many units store large industrial machinery, vehicles, and raw material on public roads, performing activities like welding, grinding, and painting directly on streets. This causes traffic congestion and provides hiding spots for criminals. The Traffic Police, PCMC, and MIDC must conduct joint inspections to clear these public road encroachments immediately, they said.“The safety of female employees working second and night shifts remains critical. There are recurring complaints of women facing harassment and stalking by intoxicated or suspicious individuals after work hours. Given the large female workforce, authorities must deploy female police teams, nirbhaya squads, regular patrols, functional streetlights, and operational CCTV networks in sensitive zones. Companies must also arrange safe transport for night-shift female workers,” said Durga Bhor, president of Durga Brigade, Pimpri-Chinchwad.With a high population of migrant workers and tenants, police verification should be conducted uniformly and transparently for all workers and contract staff without discriminating against individuals based on their state of origin. Businesses, labour contractors, and property owners must keep identification and address records updated. Interstate police coordination must also be strengthened to track criminals fleeing to other states.While the municipal corporation has installed CCTV cameras across the zone, many remain non-functional. The entire surveillance network requires immediate technical auditing and integration with the Police Control Room. High-resolution CCTV cameras equipped with automatic number Plate Recognition (ANPR) must be installed at major entry gates, intersections, bus stops, and female commuting routes.Despite Bhosari MIDC’s 50 to 60-year industrial legacy, security issues continue to escalate due to a lack of seamless coordination among MIDC, PCMC, the Police Administration, and the Traffic Department. The Association has requested that the Police Commissioner conduct an on-site inspection of Bhosari MIDC alongside business leaders and hold regular security review meetings with senior officers present.“Industries generate substantial revenue for the government and provide livelihoods to hundreds of thousands of citizens. Providing a safe, fear-free environment for entrepreneurs and workers is a fundamental administrative responsibility. Instead of temporary fixes, a permanent anti-crime framework must be implemented. Regular police patrols, route marches, and continuous security reviews with industrialists will effectively curb crime,” said Bho