YSRCP MP Magunta cries foul, pleads innocence in Delhi liquor scam as ED raids his residences

While admitting that the ED had in fact raided his residences, Sreenivasulu Reddy said there was no wrongdoing by his family-run company.

BySNV Sudhir

Published Sep 19, 2022 | 4:33 PMUpdatedSep 19, 2022 | 4:34 PM

YSRCP Ongole MP Magunta Sreenivasulu Reddy at a party meeting. (Supplied)

A day after his residences were raided by the sleuths of the Enforcement Directorate (ED), Ongole YSRCP MP Magunta Sreenivasulu Reddy on Monday, 19 September, pleaded innocence in the infamous Delhi liquor scam case and also cried foul.

He added that his name was being dragged into the Delhi liquor scam by a group of North India-based liquor traders as part of a conspiracy.

Following an FIR registered by the CBI into the alleged multi-crore Delhi excise policy scam, the ED also registered a case, possibly to investigate the money trail.

While admitting that ED had in fact raided his residences, Reddy said there was no wrongdoing by his family-run company that has been in the liquor business for the past seven decades.

He also claimed that ED teams did not find anything incriminating during the raids.

Sreenivasulu Reddy responds

Following the raids, Reddy said: “Our family has been in the liquor business for the last 70 years.  It was started by my father Raghav Reddy in 1952. After I entered politics, I disassociated myself from all the business activities of my family. I am neither a stakeholder nor a director in any of the companies and businesses run by my family members.”

He added: “My name has been dragged into the Delhi liquor scam by a group of North India-based liquor traders as some of my relatives — not members of my immediate family — bagged the rights to open a few liquor shops in Delhi through the online bidding process,” he added.

“I believe my relatives run companies that got liquor trade licenses in two zones of the total 32 zones in Delhi,” he claimed.

“It’s all a conspiracy for character assassination. The ED raided my residences in Nellore, Delhi, and Chennai. They did their duty, but they didn’t find anything incriminating. We have done nothing wrong,” asserted Reddy.

The industrialist-turned-politician and a four-time MP’s family runs the Balaji Group of companies and distilleries, and has operations in at least eight states.

TDP, BJP allege YSRCP MPs’ role in scam

The Delhi liquor scam had sent shock waves in both the Telugu states, even as BJP leaders claimed Telangana Chief Minister and TRS chief K Chandrashekar Rao’s daughter and MLC K Kavitha was involved in the scam.

A Hyderabad court had to step in to restrain the BJP leaders from making such accusations.

In Andhra Pradesh, Opposition TDP accused Chief Minister YS Jagan Mohan Reddy’s wife YS Bharathi Reddy and the party’s Rajya Sabha member V Vijaysai Reddy of being directly involved in the scam.

It was also alleged that a firm named Trident Life Sciences, associated with Vijaysai Reddy’s son-in-law Rohit Reddy, had also arranged EMD — Earnest Money Deposit — for some traders who bagged licences to sell liquor in Delhi.

On the other hand, TDP leaders and its social media wing have for a few days been accusing Jagan’s wife YS Bharathi Reddy of having a role in the scam.

“The CBI in its investigation into the Delhi liquor scam has already found the involvement of the chief minister Jagan Mohan Reddy’s wife Bharathi. Trident Life Sciences is already facing charges in Jagan’s illegal assets case,” TDP official spokesman Moka Ananda Sagar said a few days ago.

He added: “The total transactions of the Adaan Distilleries of Vijayasai Reddy have till now reached a whopping ₹5,000 crore. The CBI has already come to the conclusion that of this, ₹2,000 crore was paid as EMD to Trident Life Sciences.”

The CBI in its charge sheet has already mentioned that Trident Life Sciences is the fifth accused in the Delhi liquor scam case, and that it invested crores of rupees in Jagathi Publications, Sagar stated.

The BJP, too, has missed no chance to attack the YSRCP on the Delhi Liquor Scam case.