ED is tracking a trail of transactions as part of corruption under Delhi’s now-scrapped liquor policy for 2021-22.
In a major development in the alleged Delhi liquor policy scam, the Enforcement Directorate (ED) has arrested Magunta Raghava Reddy, son of YSR Congress MP Magunta Sreenivasulu Reddy. This is the third arrest in the case this week.
Earlier this week, the financial investigation agency arrested Gautham Malhotra and Chariot Media owner Rajesh Joshi.
According to sources, the ED arrested Reddy after his role in the alleged corruption under the now-scrapped policy came to the fore. His name was mentioned in ED’s supplementary chargesheet filed on January 6 this year.
In its chargesheet, the ED alleged that Hyderabad-based businessman Abhishek Boinpally conspired with Dinesh Arora, a close aide to Delhi Deputy chief minister Manish Sisodia, to assist in the movement of the proceeds of the corruption.
“Vijay Nair (AAP communication in charge) on behalf of leaders of AAP has received kickbacks to the tune of ₹100 crore from a group, for convenience, we may call it the South Group (as termed in the statements of various persons recorded during the investigation), whose prominent persons are YSR Congress MP Magunta Srinivasulu Reddy, Raghav Magunta, Sarath Reddy and Kavitha,” ED had said.
The chargesheet further said, “The South Group was represented by Boinpally, Arun Pillai and Buchi Babu. Boinpalli facilitated the transfer of ₹100 crores kickback in connivance and conspiracy with Nair and his associate Arora.”
Reddy was earlier questioned by the Central Bureau of Investigation (CBI) – which is also probing the case – in October last year. During questioning, Magunta Raghava Reddy was asked whether the liquor cartel paid bribes to AAP government functionaries in Delhi through a middleman.
The ED case is based on the CBI FIR filed on August 17, 2022, in response to a complaint filed by Lt Governor Vinai Saxena.