Delhi Liquor Policy Scam: YSR Cong MP's Son Raghav Magunta Sent to 10-day ED Custody

YSR Congress MP Magunta Srinivasulu Reddy’s son Raghav was produced in Delhi’s Rouse Avenue court on Saturday in connection with a money laundering investigation into alleged irregularities in the Delhi excise policy case. He was sent to custody of the Enforcement Directorate for 10 days, as was sought by the investigating agency.

According to ED, a bribe of about 100 crores went to the leader of a political party through many people and Raghav Magunta was involved in both wholesale and retail business, which was against the excise policy.

Earlier on Friday, Raghav was arrested under the Prevention of Money Laundering Act (PMLA). In the second chargesheet a fortnight ago, the ED had reportedly stated that Reddy along with Telangana chief minister K Chandrasekhar Rao’s daughter K Kavitha are the actual owners of Indospirit.

ED said that Raghav Magunta was also a manufacturer and was in possession of two retail zones. The investigating body said it can show the court how Rs 30 crore was sent through hawala, a way to transfer money illegally.

With Raghav Magunta’s arrest, it became the ninth arrest in this case by the ED, and the third this week. Earlier, ED had arrested Gautam Malhotra, son of former SAD MLA from Punjab Deep Malhotra, and Rajesh Joshi, the director of an advertising company called Chariot Productions Media Pvt Ltd, earlier in the week.

The agency had alleged that a cartel called ‘South Group’ of liquor retailers, wholesalers and manufacturers was created as part of the now-scrapped Delhi excise policy, and the father and son duo were part of it, a PTI report stated.

Reportedly, Kavitha controlled stakes through liquor businessman Arun Ramachandra Pillai. He along with businessmen Vijay Nair, Abhishek Boinpally ootha Goutham and Sameer Mahendru were chargesheeted by the CBI last year.

In the chargesheet, ED stated that “Arun Pillai, in his statement on November 12, 2022, disclosed there was a deal between Kavitha and Arvind Kejriwal-led AAP. In exchange for Rs 100cr kickbacks, Kavitha got access to the Delhi liquor business, specifically stakes in Indospirit (L1 bidder). Arun Pillai was representing Kavitha in Indospirit and even became a partner on her behalf.”

A report in Times of India quoted ED further as alleging, “During interactions with Sameer, it was made clear to him the ultimate control of 65% stake in his business was with Magunta and Kavitha. Pillai also confirmed he had arranged FaceTime video calls with Kavitha and Sameer. He also arranged a meeting of Sameer and Kavitha at her Hyderabad residence, where she took updates on Indospirit’s business from Sameer.”

After mentioning Indospirit in the second chargesheet, ED was investigating the money trail and role of the accused in the case. Sameer Mahendru was touted as owner of Indospirit, which specialises in manufacturing, distributing, importing, marketing and supplying alcoholic beverages.

Apart from Sameer and AAP communications in-charge Vijay Nair, ED named P Sarath Chandra Reddy of Aurobindo Pharma, businessman Abhishek Boinpally, liquor giant Pernod Ricard’s executive Benoy Babu and owner of Buddy Retail Ltd Amit Arora as accused in the liquor case.

According to the agency, a scrutiny of the WhatsApp chats found from his mobile phones shows “certain incriminating facts about the formulation and implementation of the Delhi excise policy”.

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