Special Judge MK Nagpal also allowed Delhi-based businessman Dinesh Arora to become an approver in the case.
Published Oct 03, 2023 | 8:15 PM ⚊ Updated Oct 03, 2023 | 8:15 PM
Magunta Raghava Reddy.
A Delhi court on Tuesday, 3 October, allowed Magunt Raghava, son of YSRCP Lok Sabha MP Magunta Srinivasulu Reddy, to turn an approver in a money laundering case linked to the alleged Delhi excise policy scam.
Special Judge MK Nagpal also allowed Delhi-based businessman Dinesh Arora to become an approver in the case being probed by the Enforcement Directorate (ED).
Both were arrested by the ED and are currently out on bail.
Earlier, on 26 September, the Supreme Court ordered the ED not to call BRS MLC and Telangana Chief Minister K Chandrashekar Rao’s daughter K Kavitha for questioning.
According to the ED, the Aam Aadmi Party (AAP) communication head Vijay Nair, on behalf of AAP leaders, received kickbacks to the tune of ₹100 crore from a so-called “South Group” — as termed in the statements of various persons recorded during the investigation — to manipulate the Delhi excise policy to benefit them.
According to the CBI, the prominent names in the “South Group” include YSRCP MP Magunta Srinuvasulu Reddy, his son Raghava, and Kavitha.
Arun Ramachandran Pillai was also arrested by the ED on the contention that he was among the three key representatives of Kavitha.
Apart from Pillai, the two other representatives of Kavitha are said to be beauty salon chain owner Abhishek Boinpally and chartered accountant Gorantla Butchibabu.
Hyderabad-based industrialist P Sharath Chandra Reddy and chartered accountant Butchibabu Gorantla had also turned approvers.
During its probe, the ED had recorded the statement of Butchibabu, in which he had said: “There was a political understanding between K Kavitha and the chief minister (Arvind Kejriwal) and deputy chief minister (Manish Sisodia). In that process, K Kavitha also met Vijay Nair on March 19-20, 2021.”
Vijay Nair, who is also in custody, was the communications in-charge of Kejriwal’s AAP and was said to be the key link between the “South Group” and the party in power in Delhi.
As against kickbacks that were paid, the South Group secured uninhibited access and undue favours, and attained stakes in established wholesale businesses and multiple retail zones, over and above what was allowed in the policy, said the CBI charge sheet.
To recover the kickbacks, the partners of the South Group were given a 65 percent stake in IndoSpirits in collusion with Sameer Mahendru, the owner of the firm.
This partnership formation was directed by Nair on the assurance of giving the wholesale business of Pernod Richard to Indo-spirits, the investigative agency contended.
Dinesh Arora, a close associate of Vijay Nair, in his statement dated 1 October, 2022, revealed that the “South Group” was supposed to get its advance money back from three major wholesalers.
He too told the ED that IndoSpirits was an entity controlled by the “South Group”, therefore the recoverable money was directly in their control.
Dinesh Arora also revealed in his statement on 18 November, 2022, that Vijay Nair, through his interaction with Benoy Babu of Pernod Ricard, ensured that Pernod Ricard’s business was given to IndoSpirits in exchange for the ₹100 crore paid by the “South Group”.
Babu, who was on bail, was asked by the Supreme Court to surrender before the ED before 25 September.
(With PTI inputs)
