Delhi liquor policy case: ED conducts raids at BRS leader K Kavitha’s house in Hyderabad
This action is in relation to the Delhi liquor policy case. Kavitha, who is also the daughter of former chief minister K Chandrashekar Rao, had reportedly failed to adhere to multiple summons issued by the agency.
- Mar 15, 2024,
- Updated Mar 15, 2024 4:26 PM IST
The Enforcement Directorate (ED) has conducted a raid on the residence of Bharat Rashtra Samithi (BRS) leader and Member of the Legislative Council (MLC) in Telangana, K Kavitha, in Hyderabad.
This action is in relation to the Delhi liquor policy case. Kavitha, who is also the daughter of former chief minister K Chandrashekar Rao, had reportedly failed to adhere to multiple summons issued by the agency.
Kavitha had previously undergone questioning in relation to the case. It has been alleged by the ED that she is linked to the 'South Group', a faction that was reportedly instrumental in the Delhi liquor policy scam.
Other alleged members of the 'South Group' include Hyderabad businessman Sarath Reddy, YSR Congress Party MP Magunta Sreenivasulu Reddy and his son Raghav Magunta Reddy - a few of whom have become approvers in the case. The group is said to have been represented by businessmen Arun Pillai and Abhishek Boinpally, along with chartered accountant Buchi Babu.
According to the Enforcement Directorate (ED), the Delhi liquor policy for 2021-22 allegedly provided unusually high profit margins, with wholesalers enjoying a margin of 12%, and retailers reaping nearly 185% profits. The ED's case suggests that out of this margin, six percent was purportedly earmarked as kickbacks for AAP leaders, with the South Group reportedly advancing ₹100 crore to Vijay Nair, an individual allegedly linked to the AAP.
In return for this financial arrangement, Nair purportedly pledged the South Group a share in the Delhi liquor business, which they previously lacked access to. Additionally, the group allegedly received permissions to hold more retail licenses than permitted under the policy, along with other perceived advantages.
According to officials, one of the entities associated with the group was Indospirits, with Sameer Mahendru serving as its Managing Director. Arun Pillai and Prem Rahul Manduri, individuals linked to the group, reportedly held a 65% stake in the company. Additionally, Kavitha and the Reddys were said to be partners in Indospirits through proxies.
Allegedly, Vijay Nair approached Mahendru, urging him to allocate a stake in Indospirits to Pillai and Manduri. In return, Indospirits was purportedly promised the wholesale business of Pernod Ricard, a major liquor manufacturer renowned for brands such as Chivas Regal, Absolut, Jameson, and Blenders Pride.
According to officials, Vijay Nair was purportedly acting on behalf of the then Delhi deputy chief minister Manish Sisodia, who is currently detained in connection with the case. Additionally, Pillai allegedly confessed to serving as Ms. Kavitha's representative in Indospirits.
The Enforcement Directorate (ED) has conducted a raid on the residence of Bharat Rashtra Samithi (BRS) leader and Member of the Legislative Council (MLC) in Telangana, K Kavitha, in Hyderabad.
This action is in relation to the Delhi liquor policy case. Kavitha, who is also the daughter of former chief minister K Chandrashekar Rao, had reportedly failed to adhere to multiple summons issued by the agency.
Kavitha had previously undergone questioning in relation to the case. It has been alleged by the ED that she is linked to the 'South Group', a faction that was reportedly instrumental in the Delhi liquor policy scam.
Other alleged members of the 'South Group' include Hyderabad businessman Sarath Reddy, YSR Congress Party MP Magunta Sreenivasulu Reddy and his son Raghav Magunta Reddy - a few of whom have become approvers in the case. The group is said to have been represented by businessmen Arun Pillai and Abhishek Boinpally, along with chartered accountant Buchi Babu.
According to the Enforcement Directorate (ED), the Delhi liquor policy for 2021-22 allegedly provided unusually high profit margins, with wholesalers enjoying a margin of 12%, and retailers reaping nearly 185% profits. The ED's case suggests that out of this margin, six percent was purportedly earmarked as kickbacks for AAP leaders, with the South Group reportedly advancing ₹100 crore to Vijay Nair, an individual allegedly linked to the AAP.
In return for this financial arrangement, Nair purportedly pledged the South Group a share in the Delhi liquor business, which they previously lacked access to. Additionally, the group allegedly received permissions to hold more retail licenses than permitted under the policy, along with other perceived advantages.
According to officials, one of the entities associated with the group was Indospirits, with Sameer Mahendru serving as its Managing Director. Arun Pillai and Prem Rahul Manduri, individuals linked to the group, reportedly held a 65% stake in the company. Additionally, Kavitha and the Reddys were said to be partners in Indospirits through proxies.
Allegedly, Vijay Nair approached Mahendru, urging him to allocate a stake in Indospirits to Pillai and Manduri. In return, Indospirits was purportedly promised the wholesale business of Pernod Ricard, a major liquor manufacturer renowned for brands such as Chivas Regal, Absolut, Jameson, and Blenders Pride.
According to officials, Vijay Nair was purportedly acting on behalf of the then Delhi deputy chief minister Manish Sisodia, who is currently detained in connection with the case. Additionally, Pillai allegedly confessed to serving as Ms. Kavitha's representative in Indospirits.