News Analysis India

Tag: Delhi Excise scam

  • No Interim Relief For Delhi CM Arvind Kejriwal From HC In ED Summons Case |

    In a setback for the Delhi Chief Minister and Aam Aadmi Party leader Arvind Kejriwal, the Delhi High Court refused to grant any interim protection from coercive action by the Enforcement Directorate. The Delhi HC said at this stage it are not inclined to grant an interim relief. However, the court sought a response from the ED on the fresh interim plea and listed the matter for April 22, 2024. The ED will have to submit its reply before April 22.

    The Delhi High Court made the observations while hearing a plea filed by Chief Minister Kejriwal seeking protection from coercive actionn by the ED in an excise policy-linked money-laundering case. The application for interim relief forms part of Kejriwal’s petition challenging the summonses issued to him for questioning by the Enforcement Directorate.

    The ED has so far issued nine summons to CM Kejriwal but the AAP leaders has skipped all terming them illegal and an attempt by the Centre to arrest him ahead of the polls. On Wednesday, the Delhi HC had asked Kejriwal why he was not appearing before the agency.

    During the last hearing, Senior Advocate Abhishek Singhvi, speaking on behalf of the petitioner, emphasized the necessity for his client to cooperate with the Enforcement Directorate (ED), while also requesting protection from any coercive measures. Singhvi highlighted the agency’s evident inclination to apprehend his client, particularly with elections looming, underscoring the urgency of safeguarding against such actions.

    In the petition, Kejriwal alleged that the arbitrary implementation of the Prevention of Money Laundering Act (PMLA) is being utilized to create an unfair advantage for the ruling party in the upcoming general elections. This, Kejriwal contended, threatens to distort the electoral process in favor of the incumbent party at the national level.

    The case revolves around accusations of corruption and money laundering related to the development and implementation of the Delhi government’s excise policy for the fiscal year 2021-2022, which was subsequently revoked.

    In connection with this case, AAP leaders Manish Sisodia and Sanjay Singh are currently under judicial custody. Kejriwal’s involvement has been repeatedly cited in the charge sheets filed by the Enforcement Directorate (ED). The agency alleges that the accused individuals maintained communication with Kejriwal during the formulation of the excise policy, which allegedly resulted in unjust advantages for them. In purported exchange, they allegedly provided kickbacks to the AAP.

  • Delhi ‘Excise Scam’: ED gets more time to quiz Pillai in wake of fresh facts, delay by Butchi Babu  

    Express News Service

    The Directorate of Enforcement on Monday secured a 3-day extension from a Special PMLA Court at Rouse Avenue Delhi, to interrogate Arun Pillai, the Hyderabad-based businessman and the representative of the South group of Liquor Traders, who was a direct beneficiary of the kickbacks from the Delhi Excise Policy 2021-22 scam and was also involved in affecting tweaks in the policy that eventually benefitted politicians, middlemen, and liquor traders.

    The ED sought more time in the wake of fresh disclosures made by Pillai during his custodial interrogation, which the agency said was crucial and was in the process of corroborating and confirming with the sources and entities mentioned by the accused.

    Also, Butchi Babu, alleged to be a close accomplice of Pillai, has been summoned for questioning on March 15 and was also required to be confronted with the accused in custody. Babu was summoned on March 9 but sought a postponement on health grounds.

    Meanwhile, Pillai also is facing a set of questions following the deposition of BRS leader K Kavitha, also the daughter of Telangana chief minister K Chandrashekhar Rao. Kavitha who is alleged to be a key member of the South Group of liquor traders, instrumental in influencing the Delhi Excise Policy and benefitting from the alterations, has been called again on March 16 to face more questions.

    Delhi’s ex-chief minister Manish Sisodia, who has been charged with tweaking the policy to favour the South Group, compromising the interest of Delhi exchequer, is also being interrogated by the ED in custody at present. Among other aspects, Sisodia is being questioned with regards to the Rs 100 cr advance allegedly received as a bribe from the South Group by middlemen on behalf of AAP to make favourable changes in the Delhi Excise Policy endorsed and enforced by him. All accused are expected to be confronted with Kavitha in the coming days.

    Meanwhile, the ED has opposed the plea filed by Pillai to retract from a couple of statements made before it under Section 50 of the PMLA 2002. The agency submitted that the statements are being recorded since September 2022 and it was quite absurd that the accused chose to retract from it after so many months. The ED submitted that given the circumstance and timing of the application for retractions, it’s quite evident that the accused is under pressure to retract his statement made earlier.

    Pillai statements were recorded on 11 occasions between 18 September 2022 and 6 March 2023 before he was arrested in the case. He had moved an application on March 9 2023 seeking to retract from two of his statements made during two of the questioning sessions in November last year citing “it was recorded under coercion”.

    The date of application also coincided with the date when K Kavitha was summoned by the ED. She however sought an alternate date citing his prefixed political engagement in which she was holding a demonstration at Delhi’s Jantar Mantar seeking early introduction and passage of the Women’s Reservations Bill by the ruling BJP-led Government at the centre. 

    The Directorate of Enforcement on Monday secured a 3-day extension from a Special PMLA Court at Rouse Avenue Delhi, to interrogate Arun Pillai, the Hyderabad-based businessman and the representative of the South group of Liquor Traders, who was a direct beneficiary of the kickbacks from the Delhi Excise Policy 2021-22 scam and was also involved in affecting tweaks in the policy that eventually benefitted politicians, middlemen, and liquor traders.

    The ED sought more time in the wake of fresh disclosures made by Pillai during his custodial interrogation, which the agency said was crucial and was in the process of corroborating and confirming with the sources and entities mentioned by the accused.

    Also, Butchi Babu, alleged to be a close accomplice of Pillai, has been summoned for questioning on March 15 and was also required to be confronted with the accused in custody. Babu was summoned on March 9 but sought a postponement on health grounds.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    Meanwhile, Pillai also is facing a set of questions following the deposition of BRS leader K Kavitha, also the daughter of Telangana chief minister K Chandrashekhar Rao. Kavitha who is alleged to be a key member of the South Group of liquor traders, instrumental in influencing the Delhi Excise Policy and benefitting from the alterations, has been called again on March 16 to face more questions.

    Delhi’s ex-chief minister Manish Sisodia, who has been charged with tweaking the policy to favour the South Group, compromising the interest of Delhi exchequer, is also being interrogated by the ED in custody at present. Among other aspects, Sisodia is being questioned with regards to the Rs 100 cr advance allegedly received as a bribe from the South Group by middlemen on behalf of AAP to make favourable changes in the Delhi Excise Policy endorsed and enforced by him. All accused are expected to be confronted with Kavitha in the coming days.

    Meanwhile, the ED has opposed the plea filed by Pillai to retract from a couple of statements made before it under Section 50 of the PMLA 2002. The agency submitted that the statements are being recorded since September 2022 and it was quite absurd that the accused chose to retract from it after so many months. The ED submitted that given the circumstance and timing of the application for retractions, it’s quite evident that the accused is under pressure to retract his statement made earlier.

    Pillai statements were recorded on 11 occasions between 18 September 2022 and 6 March 2023 before he was arrested in the case. He had moved an application on March 9 2023 seeking to retract from two of his statements made during two of the questioning sessions in November last year citing “it was recorded under coercion”.

    The date of application also coincided with the date when K Kavitha was summoned by the ED. She however sought an alternate date citing his prefixed political engagement in which she was holding a demonstration at Delhi’s Jantar Mantar seeking early introduction and passage of the Women’s Reservations Bill by the ruling BJP-led Government at the centre.
     

  • Businessman Sharath Reddy seeks bail in Delhi Excise PMLA case

    Express News Service

    P Sharath Chandra Reddy, a key accused, arrested last month in connection with the Delhi Excise scam money laundering probe, moved an application at a Special Rouse Avenue court on Monday seeking regular bail in the matter.

    The application was filed by Reddy before the court of special Judge MK Nagpal after his judicial custody was extended by another 14 days, till December 19 on the ED’s recommendation.  Reddy, has been in jail along with another accused Binoy Babu, after the ED finished quizzing them in custody on November 21. The bail application will be taken up for hearing on December 13.

    Reddy, whole-time director and promoter of Aurobindo Pharma and Binoy Babu of Pernod Ricard were arrested by the ED and produced before the court on November 10. The court granted ED permission to quiz the two in remand and confront them with the accused and witnesses, till November 21. Babu has not moved the court for bail as yet.

    The ED has alleged that Reddy is one of the kingpins and major beneficiaries in the entire Delhi Excise policy scam. The agency said that Reddy was effectively controlling five retail zones through his group company, Trident Chemphar Pvt Ltd and proxy entities, namely Organomixx Ecosystems and Sri Avantika Contractors in violation of the Excise Policy, which barred any person from controlling more than two retail zones.

    It was also alleged that Reddy was a key partner in the biggest cartel, named the “South Group” by Dinesh Arora, an accused turned approver, in his statement of manufacturers, wholesalers and retailers.

    Meanwhile, the ED had filed some explosive facts in connection with the case, which now has political implications beyond the National Capital Region of Delhi while seeking the remand of businessman Amit Arora who was arrested last week. The agency also mentioned in the remand application the name of K Chandra Shekhar Rao’s daughter Kavitha along with the names of YSRC MP Magunta Srinivasulu Reddy and his son Raghava. Arora is currently in ED custody for interrogation till December 7.

    The ED officials stated in Arora’s remand application that Kavitha had changed her mobile phone’s International Mobile Equipment Identity (IMEI) six times after the case was handed over to the agency for investigation.

    Further, the ED analysed the data based on the IMEI and found that digital evidence was destroyed to hamper the investigation. Delhi Deputy CM Manish Sisodia’s name was also figured in the application for allegedly changing the handset several times.

    According to ED officials, the investigation found that Vijay Nair, another accused closely associated with the AAP, received kickbacks worth Rs 100 crore on behalf of AAP leaders from the ‘South Group’, which is controlled by Sharath Chandra Reddy, K. Kavitha, Magunta Srinivasulu Reddy, and Amit Arora. Arora has revealed this in his statements, the ED alleged.

    Further, the ED claimed that extensive digital evidence was destroyed on purpose to stymie the investigation. “As many as 36 suspects/accused involved in the case have destroyed their 176 cell phones and laptops after the case was handed over to the agency. The ED has been able to retrieve data from 17 out of 170 cell phones. The ED officials also found the mobile phones destroyed by Kavita, Srujan Reddy, Arun Pillai, Abhishek Boinapally, Butchi Babu Gorantla, and Sharath Reddy,” the ED stated in its remand report.

    The accused Amit Arora, according to the ED officials, was instrumental in the Delhi liquor scam case by engaging in unfair business practices to gain an undue advantage.

    P Sharath Chandra Reddy, a key accused, arrested last month in connection with the Delhi Excise scam money laundering probe, moved an application at a Special Rouse Avenue court on Monday seeking regular bail in the matter.

    The application was filed by Reddy before the court of special Judge MK Nagpal after his judicial custody was extended by another 14 days, till December 19 on the ED’s recommendation.  Reddy, has been in jail along with another accused Binoy Babu, after the ED finished quizzing them in custody on November 21. The bail application will be taken up for hearing on December 13.

    Reddy, whole-time director and promoter of Aurobindo Pharma and Binoy Babu of Pernod Ricard were arrested by the ED and produced before the court on November 10. The court granted ED permission to quiz the two in remand and confront them with the accused and witnesses, till November 21. Babu has not moved the court for bail as yet.

    The ED has alleged that Reddy is one of the kingpins and major beneficiaries in the entire Delhi Excise policy scam. The agency said that Reddy was effectively controlling five retail zones through his group company, Trident Chemphar Pvt Ltd and proxy entities, namely Organomixx Ecosystems and Sri Avantika Contractors in violation of the Excise Policy, which barred any person from controlling more than two retail zones.

    It was also alleged that Reddy was a key partner in the biggest cartel, named the “South Group” by Dinesh Arora, an accused turned approver, in his statement of manufacturers, wholesalers and retailers.

    Meanwhile, the ED had filed some explosive facts in connection with the case, which now has political implications beyond the National Capital Region of Delhi while seeking the remand of businessman Amit Arora who was arrested last week. The agency also mentioned in the remand application the name of K Chandra Shekhar Rao’s daughter Kavitha along with the names of YSRC MP Magunta Srinivasulu Reddy and his son Raghava. Arora is currently in ED custody for interrogation till December 7.

    The ED officials stated in Arora’s remand application that Kavitha had changed her mobile phone’s International Mobile Equipment Identity (IMEI) six times after the case was handed over to the agency for investigation.

    Further, the ED analysed the data based on the IMEI and found that digital evidence was destroyed to hamper the investigation. Delhi Deputy CM Manish Sisodia’s name was also figured in the application for allegedly changing the handset several times.

    According to ED officials, the investigation found that Vijay Nair, another accused closely associated with the AAP, received kickbacks worth Rs 100 crore on behalf of AAP leaders from the ‘South Group’, which is controlled by Sharath Chandra Reddy, K. Kavitha, Magunta Srinivasulu Reddy, and Amit Arora. Arora has revealed this in his statements, the ED alleged.

    Further, the ED claimed that extensive digital evidence was destroyed on purpose to stymie the investigation. “As many as 36 suspects/accused involved in the case have destroyed their 176 cell phones and laptops after the case was handed over to the agency. The ED has been able to retrieve data from 17 out of 170 cell phones. The ED officials also found the mobile phones destroyed by Kavita, Srujan Reddy, Arun Pillai, Abhishek Boinapally, Butchi Babu Gorantla, and Sharath Reddy,” the ED stated in its remand report.

    The accused Amit Arora, according to the ED officials, was instrumental in the Delhi liquor scam case by engaging in unfair business practices to gain an undue advantage.