The probe agencies had alleged that Pillai, a liquor manufacturer, was the frontman of the "South Group" and played a crucial role in the case.
Published Sep 13, 2023 | 9:19 PM ⚊ Updated Sep 13, 2023 | 9:27 PM
Arun Ramachandra Pillai was arrested by the ED under the claim that he was among the three key representatives of BRS MLC K Kavitha. (Sourced)
Businessman Arun Ramachandra Pillai has reportedly turned approver in the sensational Delhi liquor scam case, being probed by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).
The ED arrested him on 7 March under provisions of the Prevention of Money Laundering Act (PMLA).
YSRCP MP Magunta Sreenivasulu Reddy, whose name also figured in the case, turned approver on 8 September. His son Magunta Raghava Reddy had turned approver before him.
Pillai will be the fifth person from South India to turn approver in the sensational case, following Sreenivasulu Reddy, his son Raghava, Hyderabad-based industrialist P Sharath Chandra Reddy, and BRS MLC K Kavitha’s Chartered Accountant Butchibabu Gorantla.
Businessman Dinesh Arora has also turned approver in the case, taking the total to six.
It is not yet clear what prompted Pillai to turn approver, as he is one of the key persons in the case. His name was mentioned in the FIR issued by the CBI after the scam came to light in New Delhi.
In 2022, the CBI conducted raids at Pillai’s house at Sushee Realty’s Eden Gardens in Kokapet in Hyderabad.
A few weeks after the CBI raided houses of those allegedly involved in the liquor policy scam in New Delhi, ED officials carried out simultaneous raids at multiple locations in New Delhi, Hyderabad, Bengaluru, and Lucknow in connection with the case.
The ED swung into action based on an FIR registered by the CBI. Separate teams from the ED conducted simultaneous raids at the houses of at least half a dozen persons — Pillai included — whose names were figured in the FIR.
In all, the CBI mentioned the names of 16 persons, including the then-deputy chief minister of Delhi Manish Sisodia, in the FIR registered on 17 August, 2022.
After registering the FIR, the CBI conducted searches at the houses of Sisodia, Pillai, and others, and seized crucial documents.
The ED earlier questioned BRS MLC Kavitha and others several times at its office in New Delhi. She handed over her mobile phones to the ED for examination.
The probe agencies alleged that Pillai, a liquor manufacturer from South India, was the frontman of the so-called “South Group” and played a crucial role in the case.
In its first prosecution complaint filed in the court, the ED said Aam Aadmi Party (AAP) communication head Vijay Nair, on behalf of AAP leaders, received kickbacks to the tune of ₹100 crore from the “South Group”, as termed in the statements of various persons recorded during the investigation.
According to the CBI, the prominent names in the South Group include Sreenuvasula Reddy, his son Raghava, and Kavitha.
Businessman Arun Ramachandra Pillai was arrested by the ED over allegations that he was among the three key representatives of BRS MLC K Kavitha.
Apart from Pillai, two other representatives of Kavitha were said to be beauty salon chain owner Abhishek Boinpally and Chartered Accountant Gorantla Butchibabu.
The investigation agency also said that kickbacks were paid in advance to AAP leaders through Vijay Nair by the South Group, as part of an agreement between them.
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 Indo-Spirits 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 South Group controlled Indo-Spirits’ stakes through false representation, concealment and proxies, the investigation agency said.
