Two more arrested in Delhi excise policy case

In the money laundering case, ED has arrested Gautam Malhotra while CBI has arrested a Hyderabad-based chartered accountant Butchibabu Gorantla

Updated - February 09, 2023 03:09 am IST

Published - February 08, 2023 08:50 am IST - New Delhi

Image for representation purpose only.

Image for representation purpose only. | Photo Credit: The Hindu

The Central Bureau of Investigation (CBI) has arrested a Hyderabad-based chartered accountant and the Enforcement Directorate has held a businessman in connection with the Delhi excise policy case.

The chartered accountant, Butchibabu Gorantla, was purportedly instrumental in the formulation and implementation of the policy, thereby causing wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners. He was linked to the group that allegedly paid ₹100 crore as kickbacks in advance through the then Aam Aadmi Party (AAP) communication in-charge Vijay Nair.

The group’s key figures were YSRCP MP Magunta Srinivasulu Reddy, his son Raghav Magunta, TRS MLC K. Kavitha and Aurobindo Pharma director P. Sarath Chandra Reddy, the ED has alleged.

In the money laundering case, the ED has arrested Gautam Malhotra, son of former Shiromani Akali Dal MLA Deep Malhotra who is in the liquor business. The agency has so far filed two chargesheets involving 17 accused/companies on the basis of its findings.

Seven chargesheeted

Earlier, the CBI had chargesheeted seven persons, including Mr. Nair, liquor manufacturer Indo Spirits’ Sameer Mahandru, India Ahead News’ Gautam Mootha, businessman Arun Pillai from Hyderabad and two Excise department officials, in November last year. Alleging a conspiracy between Mr. Nair, his “close associate” Arora, businessman Abhishek Boinpally and others, it submitted that ₹20 crore-30 crore was paid via “hawala” during July-September 2021.

The agencies have alleged that the kickback money was to be returned in the form of stakes in Indo Spirits and extra credit notes to the retail zones managed by Mr. Boinpally from Brindco company; and that the wholesale distribution of Pernod Ricard and Diageo was to go to Indo Spirits and Brindco, respectively. Following recovery of the advance payment, the 6% “kickbacks” received from wholesalers was to be shared in half between Mr. Nair and Mr. Boinpally.

According to the ED, around ₹70 lakh from the “kickbacks” was paid in cash to volunteers in the AAP’s survey teams through “hawala” channels for election campaign ahead of the 2022 Goa Assembly polls.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.