Delhi Liquor Policy Scam: CBI arrests Hyderabad-based CA Butchibabu Gorantla

Hyderabad: CBI has arrested Hyderabad-based Chartered Accountant Butchibabu Gorantla for his alleged role in the formulation and implementation of the Delhi Excise Policy. The arrested person is a top CA to many biggies in Hyderabad including Aurobindo Group Ex-Chairman P Sarath Reddy and ex-audior to BRS MLC K Kavitha. The man own three firms, namely Gorantla and Associates, Sree Enterprises and Cogent Professionals private limited. Babu was called to Delhi for questioning in the case and his arrest followed.

Butchibabu Gorantla represented the 'South Group' in the Delhi Liquor Policy. ‘South Group’ (controlled by Sarath Reddy, K Kavitha, Magunta Srinivasulu Reddy) paid bribe to the tune of Rs. 100 Crore to avail licenses and benefits in the Delhi Liquor policy, investigation revealed. Investigation agency sources said Gorantla has caused wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners under the Delhi Excise Policy for 2021-22. He will be produced in court on February 8th.

The first FIR was filed by the CBI- ACB unit in August against Delhi’s Deputy Chief Minister Manish Sisodia and 16 others for irregularities in framing and implementing Delhi’s Excise policy. Investigation revealed that the new excise policy was created to generate illegal funds. It promoted cartelization and the back door process awarding a retail margin of 185 % and wholesale of 12 %. Out of the 12 % margin, the system was designed in a way that a 6 % margin would go to AAP - probe Enforcement Directorate which was parallelly investigating the case under money laundering carried out 171 search operations across Telangana, Andhra Pradesh, Maharashtra, Tamil Nadu, Punjab, and Harayana. The search led to the seizure of documents and the arrest of Sameer Mahandru, P Sarath Reddy, Benoy Babu, Vijay Nair, Butchibabu Gorantla and Abhishek Boinapally.

ED investigation revealed that acts of corruption and conspiracy in the formulation and implementation of Delhi Excise Policy 2021-22 led to the loss of at least Rs. 2873 Crore to the government exchequer.

Proceeds of Crime generated by the activities relating to the scheduled offence under section 7 of PC Act, 2018 and 120 B of IPC, to the tune of Rs. 76.54 Crore has been traced so far and has been attached.

To date, the ED has conducted searches on multiple locations across the country including Delhi, Hyderabad, Chennai, Mumbai, and other places. After analysis of seized records followed by the disclosures of various persons, the above diversion of POC has been unearthed. Six accused namely, Vijay Nair, Sameer

Mahandru, Amit Arora, Sarath Reddy, Benoy Babu, and Abhishek Boinpally have been arrested. All are currently in judicial custody. Two Prosecution Complaints have been filed and cognizance of the offence has also been taken by the Special Court, PMLA.