The alleged liquor scam is being investigated by the Enforcement Directorate
| Photo Credit: File Photo
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A court here on Thursday allowed Hyderabad-based businessman P. Sarath Chandra Reddy to become an approver in the alleged liquor scam being investigated by the Enforcement Directorate (ED).
Mr. Reddy is the second person in the case to have turned an approver. In November last year, liquor businessman Dinesh Arora, alleged to be a close associate of former Deputy Chief Minister Manish Sisodia, had applied to become a prosecution witness. Both have been pardoned by the court.
The development assumes significance as Mr. Reddy, director and promoter of Aurobindo Pharma, was accused by the probe agency of being a member of the “South Group”, which had allegedly paid ₹100 crore as “kickbacks” to the then Aam Aadmi Party (AAP) communication and media in-charge Vijay Nair meant for senior party leaders. The other prominent members of the “South Group” were YSRCP MP Magunta Srinivasulu Reddy, his son Raghav Magunta and Bharat Rashtra Samithi MLC K. Kavitha.
The probe agency has alleged that in return for the ₹100 crore, the group partners were given 65% stake in the accused Sameer Mahandru’s Indo Spirits, which had been granted a wholesale liquor licence.
The Central Bureau of Investigation (CBI) and the ED have alleged that the now-scrapped excise policy was modified to extend a high profit margin of 12% to wholesalers and close to 185% profit margin to retailers.
The court also extended the judicial custody of Mr. Sisodia till July 19. The former Deputy CM was arrested by ED in March this year.
Last year, liquor businessman Dinesh Arora applied to become a prosecution witness