Excise policy case: HC extends Arun Pillai's interim bail till January 8

Delhi High Court has extended the interim bail granted to businessman Arun Ramachandran Pillai on Thursday in a money laundering case linked to the Delhi excise policy case, to look after his ailing wife in Hyderabad.

A vacation bench of the Delhi High Court, on the last date of the hearing, extended the interim bail to January 4, 2024, after it was submitted that complications developed after the discharge of the applicant/petitioner's wife from the hospital.

Earlier, the trial court had granted two-week interim bail to Arun Pillai and said that the applicant is being granted interim bail in this case for two weeks only from the date of his release with the condition that he shall furnish before this court a persona bond of Rs 4 lakh with one surety in the like amount.

During the said period, he shall not leave the limits of his native Hyderabad unless and until the same is necessary in connection with the treatment of his wife and he shall not destroy or tamper with the evidence of this case and shall not influence any witness of the case nor he shall even make any attempt to do so, the court said.

Advocates Nitesh Rana and Deepak Nagar, who appeared for Arun Pillai submitted that the petitioner's wife has been advised surgery and has been advised to be admitted to hospital.

Earlier the court granted custody parole to Pillai for some days. The court had directed that the accused and applicant shall be taken to his hometown at Hyderabad, Andhra Pradesh under adequate security arrangements by air or by train on a date requested by him and he shall be permitted to remain at his house or in hospital, as the case may be required, for five days, excluding the travel time between Delhi to Hyderabad.

Pillai was arrested by the ED in March 2023 in connection with the Delhi excise policy scam.

He was arrested by ED over allegations that he collected bribes from another accused, Sameer Mahendru, Managing Director of lndospirit and handed it over to the other accused.

The Enforcement Directorate has filed a supplementary complaint in the alleged liquor scam case, against Pillai and Delhi-based businessman Amandeep Dhall.

The chargesheet stated that Pillai had given false statements under section 50 of PMLA, 2002 during the investigation.

"Arun Pillai has actively participated in evidence destruction and has changed/used/destroyed 5 nos. of mobile phones in 2 years. The phones used by Sh Arun Pillai during the period of the scam have not been produced by him during the investigation," ED stated.

Further, the chats with Pillai found from other persons' phones have not been found from his phones, which were seized during the search that is because Pillai has indulged in the destruction of evidence, the chargesheet stated.

Pillai has attempted to create "a legal facade" by allegedly filing a retraction of all his statements during the period of investigation given under section 50 of PMLA.

"This act of Arun Pillai is only to create a legal facade and is motivated to derail the investigation," the agency further stated.

In the ED case, businessman Amandeep Singh Dhal was arrested on March 1 and Pillai was arrested on March 6, 2023.

The ED and the CBI have alleged that irregularities were committed while modifying the Excise Policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority's approval.

The beneficiaries diverted "illegal" gains to the accused officials and made false entries in their books of account to evade detection.

According to allegations, the Excise Department had decided to refund the Earnest Money Deposit of about Rs 30 crore to a successful tenderer against the set rules. Even though there was no enabling provision, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19.