Delhi High Court grants 15-day bail to Magunta Raghava Reddy to meet his ailing wife

Raghava was arrested after being questioned by the ED at its office in New Delhi.

Sources said that Raghava was arrested based on information provided by two other people — businessman Gautam Malhotra from Punjab and Rajesh Joshi, an aide of AAP communication head Vijay Nair.

Both Malhotra and Joshi had already been arrested by the ED.

Raghava was nabbed a few days after the arrest of Hyderabad-based Chartered Accountant Butchibabu Gorantla by the Central Bureau of Investigation (CBI) in the scam.

Butchibabu was the former auditor of BRS MLC K Kavitha, whose name also figured in the case.

Also read: ‘Magunta Raghava, his firms played key role in Delhi liquor scam’

Background on the case

The ED is probing the case based on an FIR filed by the CBI.

In its first prosecution complaint filed in the court, the ED said Nair, on behalf of leaders of the Aam Aadmi Party (AAP), received kickbacks to the tune of ₹100 crore from what is called South Group, as termed in the statements of various people 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.

The prominent people in the South Group are said to be Magunta Srinuvasula Reddy, his son Magunta Raghava and BRS MLC K Kavitha.

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

As kickbacks were paid, the South Group secured uninhibited access and undue favours, and attained stakes in establishing wholesale businesses and multiple retail zones over and above what was allowed in the policy.

To recover the kickbacks, the partners of the South Group were given 65 percent stake in IndoSpirit in collusion with Sameer Mahandru, the owner of IndoSpirit.

This partnership formation was directed by Nair on the assurance of giving the wholesale business of Pernod Richard to Sameer Mahandru.

The South Group controlled stakes in IndoSpirit through false representation, concealment, and proxies.

Also read: ED arrests Magunta Srinivasulu Reddy’s son in Delhi liquor scam