Delhi liquor scam case: Hyderabad pharma firm director Sarath Chandra Reddy turns approver

Related: Kavitha’s name mentioned in 4th ED supplementary charge sheet

ED likely to build case against Kavitha

With three persons — Arora, Butchibabu, and now Reddy — becoming approvers, the Enforcement Directorate (ED) is likely to build a stronger case against BRS MLC K Kavitha, who has already appeared before it three times for questioning in the same case.

The name of Kavitha, daughter of Telangana Chief Minister and BRS chief K Chandrashekar Rao, figured many times in the latest supplementary charge sheet filed by the ED before the Rouse Avenue Court a few days ago in connection with the case registered against former Delhi deputy chief minister Manish Sisodia in the scam.

In its second prosecution complaint filed in the court earlier, the ED said Sarath Reddy, Benoy Babu (the regional manager of a liquor company), Aam Aadmi Party (AAP) media in-charge Vijay Nair, and Kavitha’s representative Abhishek Boinpally allegedly played a crucial role in the Delhi liquor scam.

The investigating agencies arrested Reddy and Benoy Babu on 10 November, 2022, while Nair and Abhishek were arrested on 13 November.

In its first prosecution complaint filed in the court, the ED said Nair, on behalf of leaders from the AAP, received kickbacks to the tune of ₹100 crore from what was called the South Group in the statements of various persons recorded during the investigation.

Nair, who was accused number five in the FIR issued by the CBI in the case, was the communication and media in charge of the AAP.

Related: ED examines Kavitha’s phones in presence of her representative

The ‘South Group’ connection

According to the CBI, the prominent persons in the so-called South Group were Sarath Chandra Reddy, YSRCP MP Magunta Srinuvasula Reddy, his son Raghav Magunta, and Kavitha.

The kickbacks were paid in advance to AAP leaders through Nair by the South Group as part of an agreement between them, it said.

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, the charge sheet said.

According to the CBI, the partners of the South Group were given a 65-percent stake in Indo-Spirits in collusion with Sameer Mahandru, the beneficial owner of Indo-Spirits, to recover the kickbacks.

This partnership formation was directed by Nair on assurance of delivery of the wholesale business of Pernod Richard to Indo-Spirits of Sameer Mahandru, it further said.

The South Group controlled the stakes in Indo-Spirits through false representation, concealment, and proxies, claimed the central probe agency.