ED arrests son of YSR Congress MP in Delhi excise policy money laundering case

The Enforcement Directorate has arrested Raghav Magunta, son of YSR Congress Party MP from Ongole Magunta Srinivasulu Reddy, in connection with its money laundering investigation into alleged irregularities in the Delhi excise policy case, officials said Saturday.

Raghav Magunta was taken into custody under the Prevention of Money Laundering Act (PMLA) on Friday evening, they said.

He is expected to be produced before a local court, where the federal probe agency will seek his custody. This is the ED’s ninth arrest in this case, and the third this week.

It arrested Gautam Malhotra, son of former SAD MLA from Punjab Deep Malhotra, and Rajesh Joshi, the director of an advertising company called Chariot Productions Media Pvt Ltd, earlier in the week.

The agency had alleged that a cartel called ‘South Group’ of liquor retailers, wholesalers and manufacturers was created as part of the now-scrapped Delhi excise policy, and the father and son duo were part of it.

It had searched premises linked to the Member of Parliament last year.

The ED, till now, has filed two charge sheets or prosecution complaints in this case.

The money laundering case stems from a CBI FIR.

Delhi Deputy Chief Minister Manish Sisodia and other excise officials of the government were named as accused in the CBI and the ED complaints. 

This arrest comes days after the Central Bureau of Investigation (CBI) arrested a former chartered accountant of Kavitha in connection with the same case.

Indian Express quoted CBI spokesperson R C Joshi saying: “In the ongoing investigation in the Delhi excise policy case, CBI has arrested a Hyderabad-based CA, Butchibabu Gorantla, for his alleged role in the formulation and implementation of the Delhi Excise Policy and thereby causing wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners under the Delhi Excise Policy for the year 2021-22. He was produced in the court today."

With inputs from PTI