Excise case: Delhi Court dismisses YSRCP MP son's bail plea, says material collected speaks volumes of involvement

New Delhi [India], April 21 : The Rouse Avenue Court has dismissed the bail plea of Raghav Magunta, son of YSR Congress Party MP Magunta Srinivasulu Reddy, in Delhi excise policy money laundering case and said, the evidence and material collected during the course of investigation speak volumes of his involvement in the commission of the alleged offence of money laundering and his association with other conspirators.
The Special Judge MK Nagpal on Thursday passed the Judgement and said, "Court is prima facie of the view that there is a genuine case made out by the investing agency showing active involvement of the applicant in the commission of the alleged offence of money laundering and this court is not able to arrive at any finding contrary to the said view."
Hence, when the oral and documentary evidence collected by the investigating agency against the applicant, as discussed above, is considered and appreciated by this court in light of the settled legal position, stated the court.
"Therefore, this application seeking regular bail of the accused Raghav Magunta in the present case is found to be devoid of any merits and the same is liable to be dismissed. The application is accordingly dismissed," said the court.
However, the court clarified that nothing contained herein shall be tantamount to the expression of any opinion on the merits of the case.
In the matter ZohebHossain, Spl. Counsel and NK Matta Special Public Prosecutor, assisted by Gaurav Saini, Vivek Gurnani, Baibhav, Kavish Gairach and Kartik Sabharwal Advocates, appeared on behalf of the ED while Sidharth Agarwal, Senior Counsel, assisted by Gautam Khazanchi, Vaibhav Dubey, Vinayak Chawla, Subham Jain and Rudrali Patil Advocates, appeared for the accused Raghav Magunta.
Raghav's lawyers during arguements submitted that the applicant had been arrested in this case by the ED despite joining and cooperation in the investigation by him in both the above cases and also despite the fact that the offence of money laundering alleged to have been committed in this case carries a punishment of imprisonment upto seven years only.
Magunta Raghava Reddy the son of Yuvajana Sramika Rythu Congress Party's (YSRCP) MP from Ongole Magunta Srinivasulu Reddy, was arrested by Enforcement Directorate on February 10 in connection with the Delhi excise policy scam case.
According to the ED, Raghav through his proxy person Prem Rahul Manduri also held 32.5 per cent stakes in M/s Indo Spirits, which held L1 wholesale license. Raghav being part of the South group was part and beneficiary of the conspiracy in which the South Group paid Rs 100 Cr approximately to the AAP (Aam Aadmi Party).
ED earlier stated that Raghav Magunta is one of the key persons in the conspiracy of cartelisation and kickbacks hatched along with various persons in the Delhi Excise policy 2021-22 scam.
Raghav Magunta is the owner of liquor manufacturing units in the name of M/s Enrica Enterprises Pvt Ltd located in Chennai.
"He further controlled two retail zones in the name of M/s Magunta Agro Farms Pvt Ltd directly in contravention of the Excise Policy 2021-22 where a manufacturer was not permitted to hold either retail or wholesale operations. Raghav being part of the South group was part and beneficiary of the conspiracy in which the South Group paid Rs 100 Crore approximately to the AAP," said ED.
The ED and the CBI had, last year registered cases alleging 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.
As alleged, 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 COVID19, which allegedly caused a loss of Rs 144.36 crore to the exchequer, which has been instituted on a reference from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.
The CBI inquiry was recommended on the findings of the Delhi chief secretary's report filed in July showing prima facie violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010, officials had said.