ED arrests YSRCP MP Magunta Sreenivasalu Reddy’s son in Delhi liquor scam

Ongole: The Enforcement Directorate arrested Magunta Raghava Reddy, son of ruling YSRCP MP from Ongole Magunta Sreenivasalu Reddy, in connection with the Delhi Excise policy money laundering case.

This is the ED’s ninth arrest in the case and the third this week. Raghava Reddy was taken into custody under the Prevention of Money Laundering Act (PMLA). He was produced before Special Judge MK Nagpal at the Rouse Avenue Court in Delhi by ED on Saturday. The ED sought Raghav's custody in order to interrogate him regarding kickbacks to the tune of over Rs 100 crore which were allegedly laundered and distributed in the Delhi Excise scam.

The court allowed the agency to interrogate Raghava for 10 days during which he will also be confronted with other accused already in custody.

It is said that Delhi CM Arvind Kejriwal met Magunta Sreenivasalu Reddy in connection with the liquor trade. Raghava Reddy’s name came out in the initial inquiry of the liquor scam. However, his father and MP Srinivasula Reddy denied the involvement of his son in the scam. Srinivasulu Reddy has been planning to launch his son into politics in the 2024 general elections.

According to sources, the Magunta family has been in the liquor business for several decades. They are the South India distributors for the UB Group, which is based in Karnataka.

In the ongoing investigation, a few days ago, CBI arrested a Hyderabad-based Chartered Accountant, Butchibabu Gorantla, for his alleged role in formulating and implementing the Delhi Excise policy. Investigation agency sources said Gorantla caused wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners under the Delhi Excise policy 2021-22.