Alcohol policy fraud in Delhi: Accused businessman tells court ED falsified his statements and forced him to sign them

Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested in a money laundering case related to alleged Delhi excise fraud, has charged a city court with charges to the Enforcement Directorate (ED) of falsifying his statements on the matter.

The ED had claimed he was a close associate of BRS MLC and the daughter of Telangana Chief Minister K Chandrashekar Rao, K Kavitha, and an alleged frontman of the ‘South Group’ liquor cartel, which paid bribes of around Rs 100 crore to Aam Aadmi Paid Party (AAP) to gain a bigger market share in the national capital under the now scrapped excise duty policy in Delhi for 2020-21.

Special Judge MK Nagpal has sent a notice to the ED on Pillai’s application, directing the agency to submit its response by March 13.

In the lawsuit, which was brought to court on Friday, Pillai’s attorney attempted to retract statements reportedly recorded before the agency.

The defendant alleged that ED forced him to sign two documents and presented them as his statements, including one in November 2022.

Pillai was arrested by prosecutors on March 6 and brought before the court the next day. The court then sent him to ED custody, which ends March 13.

The agency said Pillai was a close associate of Kavita, who defected to the agency on Saturday.

The ED claimed that Pillai represented the “South Group” in meetings with other defendants when the policy was being formulated and implemented.

The excise tax policy was scrapped in August last year and the Deputy Governor of Delhi subsequently asked the CBI to investigate the alleged irregularities and corruption involving government agencies, bureaucrats and liquor dealers, among others.