Arrested by the Enforcement Directorate, Hyderabad-based businessman Arun Ramchandra Pillai on Friday, March 11, moved an application before Delhi's Rouse Avenue Court seeking to retract his statements given to the central agency in the excise policy case. The development came a day before Bharat Rashtra Samithi (BRS) MLC Kavitha Kalvakuntla, who is also Telangana Chief Minister K Chandrasekhar Rao’s daughter, is set to depose before ED officials in connection with the case.
The ED has alleged that Pillai was involved in a firm called South Group, which allegedly controlled a considerable portion of the liquor business in Delhi. The ED has alleged that the ‘South Group’ – controlled by Kavitha, YSR Congress Party (YSRCP) MP Magunta Srinivasulu Reddy, and Aurobindo Pharma's P Sarat Chandra Reddy, among others – gave kickbacks of crores to Aam Aadmi Party (AAP) leaders that were allegedly used in the 2022 Goa Assembly elections. The amount was paid to gain control over the liquor business in Dehi, the ED alleged.
Kavitha was earlier questioned in connection with the case by the CBI in December 2022. However, Kavitha is not an accused in the case yet and it is not clear if any financial links have been established.
The ED arrested Pillai on Monday after questioning him for hours in the case. Pillai is a partner in Indo Spirits with a 32.5% stake and he represented Kavitha's interest, said the ED. Pillai and another person have reportedly revealed the same in their statements. Pillai on paper invested Rs 3.40 crore in Indo Spirits. He was acting as a ‘benami’ representing the business interests of Kavitha, ED has alleged. In exchange for kickbacks given by the South Group to Vijay Nair and AAP, Indo Spirits was made the wholesaler of Pernod Ricard, ED has alleged.
The court on Tuesday sent Pillai to ED custody till March 13. On Friday, the court issued notice to the ED over Pillai's plea to retract his statement. Pillai’s is the 11th arrest made in the matter by the ED. The agency on Thursday apprehended Aam Aadmi Party (AAP) leader Manish Sisodia as well. Sisodia will be produced before the court in the afternoon and has sought bail in the same case being probed by the Central Bureau of Investigation.