Several prominent people from South India had given kickbacks of around ₹100 crore to the AAP government in Delhi in exchange for favours and undue benefits to them in the liquor business, the ED has alleged in its charge sheet filed before a city court in Delhi excise scam.
The ED alleged in its charge sheet filed against businessman Sameer Mahendru and AAP's communication in-charge Vijay Nair had hatched a conspiracy with K Kavitha, MLC of Telangana, Magunta Srinivasulu Reddy (MSR), MP of Ongole (Andhra), his son Raghav Magunta, and Sarath Reddy, who are collectively called as South Group.
“Mahendru, in collusion with others, formed a cartel of retailer-wholesaler-manufacturer with Pernod Ricard, Benoy Babu, Vijay Nair, representative of AAP, Arun Pillai, K Kavitha, Magunta Srinivasulu Reddy (MSR), his son Raghav, Sarath Reddy, Abhishek Boinpally and Buchi Babu,” it alleged, adding that the 'south group' was represented by Arun Pillai, Abhishek Boinpally and Buchi Babu.
Kickback mechanism
It added that Mahendru, along with the South group conspired with Nair and formed the cartel to establish a well-oiled kickback mechanism to recover the kickbacks paid.
“The kickbacks of ₹100 crore that was paid, was recovered via the profits generated by the wholesale operations of Indo Spirits, owned by Mahendru, and the retail operations of the zones owned by the South group and Mahendru… Accordingly, kickbacks to the tune of Rs 100 Cr approx was given by the South group to Vijay Nair on behalf on AAP leaders in exchange of undue favours in the excise policy,” it added.
To recover/recoup the kickbacks given by the South Group, partners of the South group were given 65 per cent stakes in Indo Spirits in collusion with Mahandru, it claimed, adding that the South group controlled these stakes in Indo Spirits, through false representation, concealment and proxies i.e., Arun Pillai and Prem Rahul, it added.