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ED questions former CA of K Kavitha in Delhi liquor scam case
Butchibabu Gorantla’s questioning by ED comes a day before BRS leader K Kavitha is to appear before the agency for the second time
The Enforcement Directorate (ED) on Wednesday questioned Butchibabu Gorantla, former chartered accountant of K Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of Telangana chief minister K Chandrasekhar Rao, in connection with its money laundering probe in the Delhi excise policy-related irregularities, people familiar with the development said.
Butchibabu’s questioning by ED comes a day before Kavitha is to appear before the agency for the second time. She was last questioned on Saturday.
Arrested by the Central Bureau of Investigation (CBI) in February, Butchibabu is currently out on bail.
He, along with Arun Ramchandra Pillai, allegedly represented the interests of the South Group in the now-scrapped excise policy. ED has informed a Delhi court that Pillai and Butchibabu were staying at a five-star hotel in mid-March 2021, during the period when the Group of Ministers (GoM) report was being finalised, which fixed profit margin for wholesalers at 12%.
“It has been revealed that the hotel’s business centre has been used by the said persons staying there,” the ED said, adding it has sought details from the hotel on this and it was awaited.
A similar claim was made by the CBI after the arrest of Delhi’s former deputy chief minister Manish Sisodia on February 26.
In his statement recorded before the ED on February 23, Butchibabu said, “There was a political understanding between K Kavitha and the chief minister of Delhi (Arvind Kejriwal) and (former) deputy CM (Manish Sisodia) of Delhi. In that process, K Kavitha has also met Vijay Nair on 19th-20th March, 2021”.
“Vijay Nair was trying to impress K Kavitha with what he could do in the policy. Vijay Nair was acting on behalf of the CM of Delhi Arvind Kejriwal and Dy CM Manish Sisodia. The understanding was that in exchange of the favours that can be done in the policy and in the Delhi liquor business for K Kavitha, some funds would be given to the AAP,” Butchibabu stated in his statement to ED, reviewed by HT.
“Out of the deal that was between K Kavitha and top AAP leaders, she was given stakes in partnership with Sameer (Mahendru) and distribution of Pernod Ricard,” ED said in its remand note last Friday citing Butchibabu’s statement, while seeking Sisodia’s custody.
The South Group comprises YSR Congress member of Parliament (MP) Magunta Srinivasulu Reddy, his son Raghav Magunta, Sarath Reddy (promoter of Aurobindo Group), and K Kavitha and Delhi based businessman Sameer Mahendru.
Kavitha has rubbished the allegations against her. “These tactics of intimidation against the fight of my father and chief minister K Chandrashekar Rao, and the BRS will not deter us,” she said earlier this week.
Kejriwal has also termed the charges as “fake”.
