In a latest development in connection with the Delhi excise policy scam, the Enforcement Directorate (ED) on Tuesday arrested Hyderabad-based businessman Arun Ramachandra Pillai. 

Pillai is an accused in the case and allegedly worked as a frontman for Telangana Chief Minister K Chandrasekhar Rao's daughter K Kavitha in a company. 

The ED had named K Kavitha in the case chargesheet accusing her of holding a 65 per cent stake in Indospirits, a liquor company. She was questioned by the probe agency at her Hyderabad house on December 11, 2022. 

In October 2022, the CBI arrested Arun Pillai's alleged associate Abhishek Boinpalli. Abhishek was director of a company named Robin Distribution LLP, an alleged shell company that was used to account for commissions from the liquor firms that benefited from the policy.

Notably, two months ago, the ED had attached Pillai’s properties in Hyderabad.

In two prosecution complaints, the ED has claimed that members of the so-called ‘South group’ paid bribes to exploit the loopholes in the excise policy that would secure their uninhibited access to various wholesale businesses and retail zones in violation of rules. 

“Arun Ramchandra Pillai, who owns a Hyderabad-based infrastructure company, is alleged to be a member of the so-called South group,” the official said.

According to the FIR, “Manish Sisodia, Deputy CM; Arava Gopi Krishna, then Commissioner (Excise); Anand Tiwari, then Deputy Commissioner (Excise); and Pankaj Bhatnagar, Assistant Commissioner (Excise) were instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without the approval of competent authority with an intention to extend undue favours to the licensee post tender”.

Citing “reliable sources”, the FIR also said that AAP’s communication in-charge Vijay Nair, Manoj Rai, an ex-employee of Pernod Ricard; Brindco Spirits owner Amandeep Dhal; and Sameer Mahendru were “actively involved in irregularities in framing and implementation of excise policy”.

"Source further revealed that some of the L-1 licence holders are issuing credit notes to retail vendors with an ab initio intention to divert the funds as an undue pecuniary advantage to public servants. In furtherance to this, they are showing false entries in their books of accounts to keep their record straight. Source further revealed that Amit Arora, director of Buddy Retail Pvt Limited, Gurgaon; Dinesh Arora and Arjun Pandey are close associates of Manish Sisodia and are actively involved in managing and diverting the undue pecuniary advantage collected from liquor licensees to accused public servants,” the FIR read.  

“Source further revealed that Sameer Mahendru, MD, Indospirit, has transferred an amount of one crore to the account of Radha Industries. Radha Industries is being managed by Dinesh Arora. Source further revealed that Arun Ramchandra Pillai used to collect undue pecuniary advantage from Sameer Mahendru for onward transmission to accused public servant through Vijay Nair,” it added.

Image courtesy: Republic World