Delhi liquor policy scam: YSRCP MP's son arrested by ED
The Enforcement Directorate (ED) arrested Yuvajana Sramika Rythu Congress Party (YSRCP) MP Magunta Srinivasalu Reddy's son, Magunta Raghava, on Friday in connection to the Delhi liquor policy scam case. The probe agency also revealed that Delhi Chief Minister Arvind Kejriwal earlier met with Reddy in the national capital regarding the liquor trade, reported India Today.
Why does this story matter?
The ED and Central Bureau of Investigation (CBI) have been investigating the Delhi liquor policy scam since last year. The arrest of Raghava comes days after two arrests, including that of Chariot Media's Rajesh Joshi by the ED, in the case. Earlier this week, the CBI also arrested a Hyderabad-based accountant, who was reportedly the auditor of Bharat Rashtra Samithi (BRS) MLC K Kavitha.
Kavitha controlled stakes in Indospirit via Pillai: Report
Reportedly, Kavitha allegedly controlled stakes in Indospirit via liquor businessman Arun Ramachandra Pillai. Pillai earlier told the ED there was a deal between Kavitha and the Aam Aadmi Party (AAP), adding he had also arranged FaceTime calls and a meeting between Kavitha and Mahendru in Hyderabad. Pillai, Vijay Nair, Sameer Mahendru, Abhishek Boinpally, and Mootha Goutham were named in the CBI chargesheet in 2022.
Deal between Kavitha and AAP: ED's chargesheet
The ED, in its chargesheet, said, "Arun Pillai, in his statement on November 12, 2022, disclosed there was a deal between Kavitha and Arvind Kejriwal-led AAP. In exchange for Rs. 100cr kickbacks, Kavitha got access to the Delhi liquor business, specifically stakes in Indospirit (L1 bidder)." "Arun Pillai was representing Kavitha in Indospirit and even became a partner on her behalf," it further added.
More details on ED's chargesheet
"During interactions with [Mahendru], it was made clear to him the ultimate control of 65% stake in his business was with Magunta and Kavitha. Pillai also confirmed he...arranged FaceTime video calls with Kavitha and Sameer," The Times of India quoted the ED as saying. "He also arranged a meeting of Sameer and Kavitha at her Hyderabad residence, where she took updates on Indospirit's business."
9 arrested so far in Delhi liquor policy scam case
Until now, the ED has filed two chargesheets in this liquor policy case and has reportedly arrested a total of nine individuals. Meanwhile, on Wednesday, Delhi's Rouse Avenue Court sent businessman Gautam Malhotra, the son of former Shiromani Akali Dal MLA Deep Malhotra, and Kavitha's accountant Butchibabu Gorantla to the ED and CBI remand, respectively, in the liquor policy scam case.
CBI reveals Gorantla's role in scam
On Gorantla's position in the formation and execution of the now-scrapped Delhi Excise Policy 2021-22, the CBI told the court, "He remained in regular touch with FIR-named accused persons and other suspects during the relevant period." The agency also said he attended various meetings with numerous accused in Mumbai, Hyderabad, and Delhi, where the entire "conspiracy was being hatched."
Know about Delhi excise policy case
The investigation into the Delhi excise policy scam case began after Delhi Lieutenant Governor VK Saxena called for a CBI probe into the matter over certain discrepancies last year. This was one of the many issues that escalated the spat between the Bharatiya Janata Party (BJP) and the AAP in Delhi, as the Kejriwal-led party alleged it was being targeted by the Centre-appointed Saxena.
All you need to know about the now-scrapped liquor policy
The Delhi Excise Policy 2021-22 was implemented in November 2021, which allegedly forced government establishments to withdraw from the market. Reportedly, 849 retail liquor licenses to private entities were issued by the Excise Department through open bidding. However, opposition parties, including the BJP, alleged corruption and expressed their disapproval of the policy. Later, in July 2022, the Delhi government officially scrapped the liquor policy.
CBI's recent raid at Manish Sisodia's office
On January 14, the CBI conducted raids on Delhi Deputy Chief Minister and AAP leader Manish Sisodia's office. This was not the first time the probe department raided the Delhi Deputy CM's office or residence. In August 2022, the central investigation agency searched the AAP leader's Punjab National Bank locker in connection to the Delhi Excise Policy money laundering case.
Sisodia named as accused but not in chargesheet: Know more
In the case, excise officials and Sisodia were named as accused in the complaints. However, the probe agency has not named the Delhi deputy CM in the chargesheet. Both CBI and ED have been investigating the liquor scam case wherein the AAP has been charged for generating Rs. 100 crore kickbacks from the now-scrapped 2021-22 Delhi excise policy.
