Butchibabu is presently in Tihar jail after being arrested by the CBI for his alleged role in the formulation of the Delhi Excise Policy.
The Enforcement Directorate carried out search-and-seize operations at 25 locations in multiple states. (Supplied)
Causing a political flutter, a special court for CBI cases in New Delhi on Wednesday, 22 February, granted permission to the Enforcement Directorate (ED) to question BRS MLC K Kavitha’s former chartered accountant Butchibabu Gorantla for two days in the Delhi liquor scam case.
Butchibabu is currently in Tihar jail in New Delhi after being arrested by the CBI on 8 February for his alleged role in the formulation of the Delhi Excise Policy.
It is alleged that he caused wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners under the scrapped Delhi Excise Policy for the year 2021-22.
The ED is expected to question Butchibabu on 23 and 24 February in Tihar jail.
It is likely to focus on his association with the members of the “South Group”, comprising YSRCP MP Magunta Srinivasulu Reddy and his son Magunta Raghav, Kavitha’s representatives Arun Ramachandran Pillai and Abhishek Boinapally, and others in reportedly paying kickbacks to Aam Aadmi Party (AAP) leaders.
The five retail zone licences owned by three companies — TCL, Avantika and Organomix — belonging to P Sarath Chandra Reddy, a Hyderabad-based pharma company director, were allegedly also a part of the cartel, according to a source.
Evidence in the form of statements made by the approver, Dinesh Arora, some of the other accused prior to their arrest and witnesses namely Arun Ramachandra Pillai, Ashish Roy, Chandan Reddy, T Raj Kumar, Tanmay Vashisth, Mohit Gupta, Butchibabu and Manoj Rai etc. clearly showed that Sharat Chandra Reddy was controlling the affairs of five retail zone licenses owned by his three entities through Abhishek Boinpally and Chandan Reddy.
Their statements to this effect are also found to be corroborated by some Whatsapp chats between Sameer Mahandru, Manoj Rai, Arun Ramachandran Pillai and Benoy Babu.
Further, digital evidence to this effect is also found to have been collected during the course of the investigation.
Butchibabu was among the various persons and different stakeholders, including the approver Dinesh Arora, Vijay Nair, Abhishek Boinpally, Arjun Pandey who reportedly attended a meeting held in May and June, 2021 in Gauri Apartments, near Claridges Hotel, Delhi and at Hotel ITC Kohenur, Hyderabad.
The planning of delivery of ₹20-30 crore through an approver was stated to have allegedly figured at a meeting held in Hyderabad. The approver was apparently asked to coordinate with Abhishek Boinpally and his cousin Lupin about it.
The “South Group” allegedly gave the kickbacks to the tune of ₹100 crore to co-accused Vijay Nair for AAP leaders and other public servants.
It was apparently at their instance that the provision of a 12-percent profit margin was incorporated into the policy.
Also, their representatives Arun Ramachandran Pillai and Prem Rahul Manduri were given partnership stakes of 32.5 percent each in Indo-Spirits belonging to Sameer Mahandru.
The investigation also revealed that Prem Rahul Manduri even got no share in the profits of the firm, despite having a 32.5 percent stake therein.
It was also at the instance of this accused that a meeting in February or April of 2022 at Oberoi Maidens in Delhi allegedly took place between Vijay Nair, K Kavitha, Dinesh Arora, and others to discuss difficulties in recouping the advance kickbacks and the ways to recoup it faster and securely.
Hyderabad-based jeweller Sukesh Gupta appeared before the ED in Hyderabad on Wednesday in connection with a case related to irregularities in the gold import scheme.
He appeared before the ED following directions from the Telangana High Court. The investigation was taken up based on an FIR issued by the CBI in 2014.
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