Hyderabad, Mar 8 (IANS): The Enforcement Directorate (ED) has said that Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested in the Delhi excise policy case on Monday night, acted as the benami of K. Kavitha, daughter of Telangana Chief Minister K. Chandrasekhar Rao.
In the remand report filed in a Delhi court on Tuesday, the ED stated that Pillai is one of the key persons in the entire scam involving payments of huge kickbacks and formation of the biggest cartel of the South Group.
According to the agency, South Group comprises Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, K. Kavitha (MLC, Telangana) and others. The South Group was being represented by Arun Pillai, Abhishek Boinpalli and Butchi Babu.
"Arun along with his associates was coordinating with various persons to execute the political understanding between the South Group and a leader of AAP. Arun Pillai has been accomplice and was involved in the kickbacks from the South Group and the recoupment of the same from the businesses in Delhi," the ED said.
The ED had earlier said that the South Group gave kickbacks of Rs 100 crore to AAP leaders.
According to the remand report, Arun Pillai is a partner of 32.5 per cent in Indo Spirits, which had got an L1 licence. Indo Spirits is a partnership firm of Arun (32.5 per cent), Prem Rahul (32.5 per cent) and Indospirit Distribution Limited (35 per cent), wherein Arun and Prem Rahul represented the benami investments of K. Kavitha and Magunta Srinivasulu Reddy and his son Raghava Magunta.
Arun Pillai, along with his associates Abhishek Boinpalli and Butchi Babu on behalf of the South Group, orchestrated the whole scheme of forming a cartel of the manufacturers, wholesalers and retail which controlled more than 30 per cent of the whole liquor business in Delhi, it said.
According to the remand report, Arun Pillai was involved in forming a cartel of manufacturers, wholesalers and multiple retail zones.
Arun Pillai is a partner in Indo Spirits. In this partnership firm, Arun Pillai represented the interests of K. Kavitha.
Arun Pillai and another person have revealed the same in their statements. Arun Pillai on paper invested Rs 3.40 crore in Indo Spirits. As revealed in the investigation, out of this amount, Rs 1 crore was given to Arun Pillai on the instructions of Kavitha.
In exchange for kickbacks given by the South Group to Vijay Nair and AAP, Indo Spirits was made the wholesaler of Pernod Ricard which made it one of the most profitable L1. Thus the fund of Rs 3.40 crore which used to show investment in Indo Spirits (a special purpose vehicle to recoup the kickbacks paid by the South Group and channel the illegal gains) is proceeds of crime, the ED added.
Kavitha, who is a member of Telangana Legislative Council, was questioned by the Central Bureau of Investigation (CBI) in the same case in December last year.