AAP used excise scam to generate illegal funds, caused Rs 2,873 cr loss: ED

The ED has claimed in its charge sheet before a court that the Delhi Excise Policy, which caused total loss of Rs 2,873 crore to govt exchequer, was a device created by Aam Aadmi Party (AAP) leaders

The ED has claimed in its charge sheet before a court here that the Delhi Excise Policy, which caused total loss of Rs 2,873 crore to govt exchequer, was a device created by Aam Aadmi Party (AAP) leaders, some of who are part of Delhi government, to generate illegal funds.

In its first charge sheet filed in the scam, the agency alleged that the constitution of expert committee and calling of public opinion were merely eyewash and their reports were never to be implemented.

The policy was formulated with deliberate loopholes, inbuilt mechanism to facilitate illegal activities and is marred with inconsistencies which when looked deeply, reflect malafide intentions of the policymakers, it alleged.

 

This policy promoted cartel formations through back door, awarded exorbitant wholesale (12 per cent) and huge retail profit margin of 185% and incentivized other illegal activities on account of criminal and political conspiracy of leaders of AAP, it alleged, adding that the 12 per cent profit margin to the wholesalers was devised to extract a portion of it as a kickback to the AAP leaders.

It further alleged that AAP's communication in-charge and co-accused Vijay Nair also arm twisted few wholesalers to surrender their licenses and then coerced the manufacturers surrendered through that license to choose the wholesalers of his choice and favour to direct the profit margins to those persons.

Nair, on behalf of leaders of AAP has received kickbacks to the tune of Rs 100 Cr from a group, whose prominent persons are Magunta Srinivasulu Reddy, Raghav Magunta, Sh Sarath Reddy and K Kavitha. These kickbacks were paid in advance to the AAP leaders through Vijay Nair by the South Group as a part of agreement between the South Group and the AAP leaders. Against the kickbacks paid, the south group secured uninhibited access, undue favours, attained stakes in established wholesale businesses and multiple retail zones (over and above what was allowed in the policy), it added.

The charge sheet, which has arrayed Mahendru and four companies as accused, claimed that another method of recovery of the kickbacks was through passing of Credit Notes.

It further claimed that as soon as the scam was unearthed, and the case was surfaced/handed over to investigating agency, large number of digital devices were found to be destroyed/changed by the persons involved/suspected to be involved in this case. At least, 36 accused/ suspects involved in Excise scam have destroyed/used 170 phones.

The magnitude of the destruction is such that most accused, liquor barons, senior government officials, Excise Minister of Delhi and other suspects have changed their phones multiple times, where the approx value of the devices used and destroyed comes to whooping sum of Rs 1.38 crores approx, it said, adding that Mahandru has changed/destroyed his mobile phone 4 times in the last 5 months indicating destruction of evidence.

It further alleged that the Excise Policy was leaked to the certain liquor wholesalers and liquor manufacturer much before it was released and that large number of approvals given by excise officials beyond the working hours/late night.

The Delhi Excise Policy 2021-22 was formulated for providing monetary benefit to both private persons as well as certain politicians of Aam Aadmi Party, it alleged.

It added that Mahendru was involved in the conspiracy from the beginning in collusion with others and was actively driving the key agenda points in the excise policy of 2021-22 while the drafting stage to frame excise policy amenable/ favourable to him.

Delhi Govt exchequer has incurred a loss of Rs 2,873 Cr during the operation period of the Excise Policy 2021-22 on account of deliberate faulty policy formulation and implementation to pass on undue favours to certain private players who are in collusion with the policymakers/GoM/Excise Department of Govt of Delhi, it alleged.

It added that the loss to the exchequer has resulted from conspiracy and kickbacks paid to the govt functionaries, therefore, it is nothing but proceeds of crime as defined above.

Further, out of total proceeds of crime (POC) of Rs 2,873 Cr the POC generated by the accused person covered in the Prosecution Complaint is estimated to be at least Rs 295.45 Cr by way of activities and processes involved in the predicate offence by the accused persons covered in the subject Prosecution Complaint, proceed of crime of at least Rs 295.45 Cr has been generated directly or indirectly by Mahandru and other accused as a result of criminal activity related to the scheduled offence, it added.

A court here on Tuesday took cognisance of the Enforcement Directorate's first charge sheet, naming liquor businessman Sameer Mahandru and four companies, in the Delhi Excise policy money laundering case.

Mahandru was arrested by the Enforcement Directorate on September 27 following his questioning.