Excise policy scam: Court seeks response from ED on Raghava Reddy's plea

The Rouse Avenue Court on Saturday sought the Enforcement Directorate (ED)'s response on a bail plea moved by Raghav Magunta, son of YSR Congress Party MP Magunta Srinivasulu Reddy, in Delhi excise policy money laundering case.

The Special Judge MK Nagpal on Saturday issued notice to ED on the plea listed the matter for March 16, 2023, with detailed arguments.

Meanwhile, the Court also extended the judicial custody of Raghav Magunta for further 14 days. Raghav Magunta was produced in court after his judicial custody was over.

Magunta Raghava Reddy the son of Yuvajana Sramika Rythu Congress Party's (YSRCP) MP from Ongole Magunta Srinivasulu Reddy, was arrested by Enforcement Directorate on February 10 in connection with the Delhi excise policy scam case.

According to the ED, Raghav through his proxy person Prem Rahul Manduri also held 32.5 per cent stakes in M/s Indo Spirits, which held L1 wholesale license. Raghav being part of the South group was part and beneficiary of the conspiracy in which the South Group paid Rs. 100 Cr approx. to the AAP.

ED earlier stated that Raghav Magunta is a key person in the conspiracy of cartelisation and kickbacks hatched along with various persons in the Delhi Excise policy 2021-22 scam. Raghav Magunta is the owner of liquor manufacturing units in the name of M/s Enrica Enterprises Pvt Ltd located in Chennai.

He further controlled 2 retail zones in the name of M/s Magunta Agro Farms Pvt Ltd directly in contravention of the Excise Policy 2021-22 where a manufacturer was not permitted to hold either retail or wholesale operations. Raghav being part of the South group was part and beneficiary of the conspiracy in which the South Group paid Rs. 100 Cr approx. to the AAP, said ED.

The ED and the CBI had, last year registered cases alleged that irregularities were committed while modifying the Excise Policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority's approval. The beneficiaries diverted "illegal" gains to the accused officials and made false entries in their books of account to evade detection.

As alleged, the Excise Department had decided to refund the Earnest Money Deposit of about Rs 30 crore to a successful tenderer against the set rules. Even though there was no enabling provision, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19, which allegedly caused a loss of Rs 144.36 crore to the exchequer, which has been instituted on a reference from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.

The CBI inquiry was recommended on the findings of the Delhi chief secretary's report filed in July showing prima facie violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010, officials had said.