In August 2002, as the Minister for Water Resources, he faced allegations for leasing 141.15 ha (348.8 acres) of land from Maharashtra Krishna Valley Development Corporation (MKVDC) to Lavasa, a project touted as a "vision of Sharad Pawar." Reportedly, the lease between MKVDC and Lavasa was executed at rates far below the market rate.   In September 2012, his name appeared in a multi-crore scam amounting to Rs. 70,000 Crores. These allegations were made by Vijay Pandhare, a former Maharashtra bureaucrat; following, which Ajit Pawar had to resign from the post of the Deputy CM; however, he was reinstated as the Deputy Chief Minister of Maharashtra after getting a clean chit.   In April 2013, when Maharashtra was suffering from a drought crisis, he made a controversial statement at a function at Indapur near Pune- "If there is no water in the dam, should we urinate into it?" Later, he termed this statement as the biggest mistake of his life.   On 16 April 2014, while campaigning for his cousin Supriya Sule, who was contesting the general election, in a village named Masalwadi in the Baramati constituency, Ajit Pawar threatened the villagers that if they did not vote for Sule, he would punish them by cutting off the water supply to the village.                  

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