Big action by ED in Delhi liquor scam: Two private company executives arrested

In the latest update on the Delhi liquor scam, the Enforcement Directorate (ED) has made two arrests under PMLA. The accused have been identified as businessman Sharath Reddy, who is part of a pharma company and Benoy Babu, an official of a liquor company.

Republic has learnt that the agency quizzed Sharath Reddy multiple times before his arrest. Benoy Babu, who has been a representative of a liquor manufacturing company for a long time, was also questioned by the central agency earlier. As of now, it’s unclear whether Benoy is still associated with the company that has allegedly benefitted from the liquor policy of the Delhi government. According to the preliminary information, the arrested two -- Sharath Reddy and Benoy Babu – will be produced before the court on Thursday by the agency. 

Notably, this development comes days after the Aam Aadmi Party (AAP) leader and Delhi deputy CM Manish Sisodia's aide, Dinesh Arora, agreed to turn a government approver in the Delhi liquor scam case. Notably, this is the third arrest by the ED which is probing the money laundering angle in the Delhi liquorgate scam. Earlier, the MD of Indospirit Group, Sameer Mahendru was arrested in connection with the money laundering probe by the agency in the case concerned.

Delhi liquorgate scam

In July, Delhi LG VK Saxena recommended a CBI probe into the Arvind Kejriwal-led government's excise policy of 2021-22. Delhi Deputy CM Sisodia, who is in charge of the excise department, has been under the scanner for alleged deliberate and gross procedural lapses which provided undue benefits to the tender process for liquor licencees for the year 2021-22 in Delhi. It was alleged that irregularities were committed including modifications in the Excise Policy and undue favours were extended to the license holders including waiver or reduction in license fee and an extension of L-1 license without approval.

The CBI booked 15 accused persons, including Sisodia under IPC Section 120B (criminal conspiracy) and 477A (falsification of accounts) and Section 7 of the Prevention of Corruption Act. While AAP alleged that it was an attempt to force Sisodia and other MLAs to join BJP and topple the Arvind Kejriwal-led government, the saffron party has refuted this claim.