Delhi liquor scam: ED questions Kavitha’s ex-CA as it seeks to uncover more details of ‘South Group’

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 and implementation of the Delhi Excise Policy and thereby causing wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners under the scrapped Delhi Excise Policy for the year 2021-22.

On the first day of questioning, the officials of ED quizzed Butchibabu Gorantla with the help of a questionnaire prepared with the information collected so far as part of the investigation of the scam in coordination with the CBI.

Related: ‘ED forcing witnesses to sign pre-dictated statements’

Focused on the ‘South Group’

During the questioning, the ED mainly focused on Butchibabu Gorantla’s association with the members of “South Group” — comprising YSRCP MP Mangunta Srinivasulu Reddy and his son, Magunta Raghava, who is custody; and Kavitha’s alleged representatives, the Hyderabad businessmen Arun Ramachandran Pillai and Abhishek Boinapally — in reportedly paying kickbacks to Aam Admi Party (AAP) leaders.

The ED officials also gathered information about Sarath Chandra Reddy, who was allegedly controlling the affairs of five retail zone licenses owned by his three entities — TCL, Avantika and Organomix — through Abhishek Boinpally and Chandan Reddy.

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Looking to uncover Kavitha’s involvement

Butchibabu Gorantla was among the various persons and different stakeholders — including the approver Dinesh Arora, AAP media coordinator Vijay Nair, Abhishek Boinpally, and Arjun Pandey — who reportedly attended meetings held in May and June 2021 in Gauri Apartments, near Claridges Hotel in Delhi, and at Hotel ITC Kohenur in Hyderabad.

With the help of information already mentioned in the ED prosecution complaint filed before the court in New Delhi earlier, the investigative agency tried to know more about the deal and the understanding between Kavitha and AAP wherein kickbacks were paid to the tune of ₹100 crore.

Kavitha is said to have got access to the Delhi liquor business specifically through stakes in IndoSpirits of another accused, Sameer Mahendru, at Okhla Industrial Area in New Delhi, the ED said in its prosecution complaint.

Ramachandran Pillai is said to have represented Kavitha in IndoSpirits. He became a partner in IndoSpirits on her behalf, ED added in that complaint.

Further, it was mentioned that he arranged funds for the investment that was required on paper to become a partner, adding that he attended a meeting at Oberoi Maidens along with Kavitha and others.