CBI grills YSR Congress MP's son in Delhi liquor scam

HYDERABAD: CBI on Monday questioned Ongole YSR Congress MP Magunta Sreenivasulu Reddy's son Magunta Raghava Reddy in connection with the ongoing probe into the alleged now-scrapped Delhi liquor policy scam. He was grilled along with Delhi deputy chief minister Manish Sisodia.
CBI sources said Raghava Reddy was asked whether the liquor cartel paid bribes to AAP government functionaries in Delhi through a middleman.
CBI and ED had alleged that three liquor cartels were involved in the scam. Two of them were based in the south with one in Hyderabad, linked to bizmen and politicians
It is alleged that the Magunta family was running one of the liquor cartels in Delhi. The Magunta family has been in liquor business for the last several years. CBI sleuths questioned Raghava Reddy in its Delhi office. In its FIR, booked for criminal conspiracy, falsification of records and section 7 of the Prevention of Corruption Act, the investigation agency did not name Raghava Reddy in the case. However, CBI alleged in the FIR that Sisodia’s accomplices — Amit Arora, director of Buddy Retail Private Limited, Dinesh Arora and Arjun Pandey — were allegedly involved in managing and diverting the undue pecuniary benefits accured from liquor licensees.
Balaji Distilleries, owned by the MP, also allegedly benefited from the Delhi liquor policy. Apart from Balaji Distilleries, other companies such as Angel Champagne LLP and Tamil Nadu Distillery Industrial Alcohol Private Limited were the two key firms linked to the Magunta family which came under the CBI radar. It is alleged that several irregularities were committed in the manufacturing and distribution of liquor by Balaji group of companies. While rules of Delhi excise policy 2021-22 clearly said that no company should be allotted more than two zones, Pixie Enterprises Private Ltd and Magunta Agro Farms Private Ltd were awarded zonal retail licences for zone 32 and zones 4 and 23 respectively in violation of the rules.
Both companies are two entities of Balaji group. The policy also prohibits bidding by any company which has any manufacturing facilities directly or through any sister or a related concern. Balaji group of companies was allotted licences for three zones by the AAP government even though it is engaged in liquor manufacturing. Magunta Agro Farms won a tender for a zone that the authorities deemed an ‘undeclared non-conforming’ zone. As a result, Magunta Agro Farms approached the court seeking an exemption from paying the licence fee. The government opposed this, saying the company was at liberty to move to another zone.
The YSRC MP, who had recently announced that his son would contest as Ongole MP in the next elections, however, refuted the allegations of his involvement in the liquor scam after the Enforcement Directorate searched his premises. He added that he was not involved in taking or giving bribes. ED conducted searches in Hyderabad, Nellore and Chennai on the offices and residences of the MP. Both CBI and ED had alleged that three liquor cartels were involved in the scam. Two of them were based in the south with one in Hyderabad, linked to businessmen of a pharma and real Estate company and top politicians in Telangana.
Abhishek Boinpally, who was arrested by CBI, was linked to this cartel, sources said. The other cartel allegedly belonged to the MP and his son. CBI had booked FIRs against several accused, including Arun Ramchandra Pillai, a liquor businessman from Hyderabad, and IAS officer Arva Gopi Krishna, who was Delhi excise commissioner, when the alleged scam took place.