Bharat Rashtra Samithi (BRS) leader K. Kavitha addressing a media conference, in Hyderabad on Friday. (ANI Photo)
| Photo Credit: ANI
The Enforcement Directorate has summoned BRS MLC K. Kavitha, daughter of Telangana Chief Minister K. Chandrasekhar Rao, for questioning in the Delhi excise policy case on Thursday, March 9, 2023.
On Tuesday, the agency took into custody Hyderabad-based liquor businessman, Arun Ramchandra Pillai, who allegedly represented the interests of Ms. Kavitha. During the questioning, it will confront her with the purported disclosures made by him.
The ED has issued summons to Ms. Kavitha at a time when she is preparing to stage at protest in New Delhi on March 10 demanding enacting of women’s reservation Bill. She had arrangements for the protest on behalf of Bharat Jagruthi headed by her.
On the other hand, the Chief Minister K. Chandrasekhar Rao had also convened a meeting of his Cabinet on Thursday.
Also read: Delhi excise scam case | Manish Sisodia sent to Tihar jail till March 20
According to the ED, Mr. Pillai along with co-accused Abhishek Boinpally and chartered accountant Butchibabu Gorantla was a front for the “South Group” that was extended favours under the now-scrapped excise policy.
He is a partner of 32.5% in Indo Spirits, which had got wholesale licence. The company is a partnership among Mr. Pillai (32.5%), one Prem Rahul (32.5%) and Indospirit Distribution Limited (35%), wherein Mr. Pillai and Mr. Rahul represented the ‘benami’ investments of Ms. Kavitha and YSRCP MP Magunta Srinivasulu Reddy and his son Raghav Magunta, respectively, the agency has alleged.
Cartel
The ED has accused Mr. Pillai and others of orchestrating the whole scheme of forming a cartel of manufacturers, wholesalers and retailers which controlled over 30% of the whole liquor business in Delhi. On paper, he was shown to have invested ₹3.40 crore in Indo Spirits. “As revealed in the investigation, out of this amount, ₹.1 crore was given to Arun Pillai on the instructions of K. Kavitha,” the ED has alleged.
Alleging irregularities in its implementation, the ED and the Central Bureau of Investigation (CBI) have stated that the excise policy was modified to provide a high 12% profit margin for wholesalers and almost 185% profit margin for retailers.
It is alleged that the then AAP communication and media in-charge Vijay Nair, on behalf of Aam Aadmi Party leaders, received ₹100 crore in advance from the “South Group” comprising Mr. Reddy, his son, Ms. Kavitha and Aurobindo Pharma director P. Sarath Chandra Reddy.
The group partners were given 65% stakes in co-accused Sameer Mahandru’s Indo Spirits for the recovery of advance payments. The stakes were controlled through “false representation, concealment of true ownership and proxies”.
The CBI chargesheet also alleges that the wholesale distribution of Pernod Ricard and Diageo was to go to Indo Spirits and Brindco Spirits, respectively. After recovering the money, the 6% kickbacks received from wholesalers was to be shared equally between Mr. Nair and Mr. Boinpally.
The ED has so far arrested 11 accused persons and attached properties worth ₹76.54 crore under the Prevention of Money Laundering Act.
(With inputs from Hyderabad bureau)
