Delhi excise case: ED questions Hyderabad businessman Arun Ramchandra Pillai about transactions with K Kavitha

HYDERABAD: The Enforcement Directorate on Thursday grilled Hyderabad businessman Arun Ramchandra Pillai in the alleged Delhi excise scam. Sources told TOI that Pillai was grilled on specific transactions involving Kavitha. He has already told the agency that the investment he was holding in the liquor company, Indospirits, was on behalf of Kavitha. ED is likely to question Pillai and Kavitha on March 11.
ED, in its prosecution complaint (charge sheet), said Kavitha was one of the key persons in the 'South Group' lobby which allegedly bribed the Aam Aadmi Party government in Delhi to fund elections. The South Group has been accused of paying 100 crore as kickbacks to AAP communication in-charge Vijay Nair in lieu of favours to ministers and officials of AAP government.
ED also alleged that the accused formed a retailer-wholesaler-manufacturer cartel comprising Kavitha, Arun Pillai, YSRC Ongole MP Magunta Srinivasulu Reddy's son Raghava Magunta, P Sarath Chandra Reddy of Aurobindo Pharma, Hyderabad businessman Abhishek Boinpally and Kavitha's former chartered accountant Butchi Babu Gorantla. "They were collectively called as South Group, as named by another accused Dinesh Arora in his statements," it said.
The investigating agency mentioned the accused attending several meetings at a five-star hotel in September 2021. "A few days after this dinner, Arun Pillai made another accused Sameer Mahendru (Indospirit MD) speak to Kavitha on Facetime through his phone wherein she congratulated the latter for the Delhi business. She said she is very happy that they are partners," ED alleged.
"Sameer met Kavitha in early 2022 at her Hyderabad house. In this meeting, Sameer, Sarath Chandra, Arun Pillai, Abhishek, Kavitha and her husband Anil were present. In the meeting, Kavitha said to Sameer that Arun Pillai is like family to her and doing business with him is doing business with Kavitha and that they will take this relationship to a larger scale in multiple states and expand majorly," the ED added.