HYDERABAD: Naming Hyderabad-based businessmen and MLC K. Kavitha in Magunta Raghava Reddy's remand report, Enforcement Directorate (ED) officials reported that the main arm of the Delhi liquor scam rested on the conspiracy orchestrated by the ‘South Group’ in connivance with AAP leaders.
In this alleged conspiracy, some big political leaders of various parties have been found involved by way of using proxies, dummies, and a web of exchanges/transactions to conceal their involvement.
The South Group comprises among others YSRC MP Magunta Srinivasulu Reddy and his son Raghava Reddy and Kavitha, who was represented by Arun Pillai, Abhishek Boinpally and G. Buchi Babu. South Group members and their representatives were meeting regularly as were others into Delhi liquor trade.
Raghava Reddy is the owner of liquor manufacturing units in the name of Enrica Enterprises Pvt Ltd located in Chennai. He controlled two retail zones in the name of 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, the ED said,
Raghava Reddy, through his proxy, Prem Rahul Manduri, also held a 32.5 per cent stake in Indo Spirits, which held L1 wholesale licence, the ED claimed. Raghava Reddy paid `100 crore to AAP leaders.
Raghava Reddy conspired with other persons and connived in floating the cartel of manufacturers, wholesalers and retailers. The investment of `40 crore in Magunta Agro by Raghav Reddy is nothing but proceeds from crime, the ED stated.
The ED alleged that it was apparent that Raghav Reddy knowingly assisted in various processes or activities of possession, use and transfer of the proceeds of crime touching `180. He is guilty of money laundering under section 3 of the PMLA punishable under Section 4 of the PMLA, the ED claimed.
