HYDERABAD: The Enforcement Directorate (ED) has pegged the loss to the exchequer at around Rs 2,631 crore in the Delhi liquor case. The ED arrested Aurobindo Pharma director P Sarath Chandra Reddy along with another accused Benoy Babu, regional head of Pernod Ricard, in the excise case on Thursday . In its remand report, ED alleged that Delhi excise officials gave various reasons for the licence fee it fixed such as Covid-19 waiver, court orders, surrendering of licence by some holders, default by licensee, refund of security deposit, increase in profit of wholesalers and refund of earnest money deposit to the highest bidder. The 32 retail zones were auctioned in two phases: 20 zones in the first round and 12 in the second round. The total reserve licence fee was fixed at Rs 7,025 crore for 2021-22 and the bid amount was Rs 8,911 crore for one year. The prorate licence fee that should have come to the excise department was Rs 7,029 crore during the period from November 2021 to August 2022. But ED said that only Rs 5,037 crore was collected by the excise department. ED alleged that cartelisation by license holders was done in exchange for bribes paid to Delhi excise officials and members of Delhi government. Out of 32 retail zones, the cartel led by Sarath controlled nine. Apart from Trident Chemphar, ED alleged Sarath has proxy ownership of Organomix Ecosystems and Sri Avantika Contractors. The cartel controlled 30% of the Delhi liquor market. ED also alleged that 34 suspects changed 140 mobile phones worth Rs 1.2 crore to destroy digital evidence. These suspects include key accused, liquor barons, senior government officials, excise ministers of Delhi and others. “The timing of change of phones indicates that these phones were mostly changed after the case surfaced,” alleged ED. ED also alleged that the excise policy was leaked to a few liquor manufacturers much before it was released. Analysis of the email dump of Benoy Babu revealed that he was in possession of the excise policy much before it was made public. “Benoy Babu was part of policy formulation and created loopholes to benefit Pernod Ricard, such as price increase for its brands and scope for cartel formation. The financial assistance was offered by Pernod Ricard in the form of corporate guarantee of Rs 200 crore. However, ED investigation revealed that this is an investment by Pernod Ricard in retail business for formation of a cartel,” ED said. The agency said it has found evidence to show that a large number of approvals were given from 10 pm to 7 am by excise officials whereas working hours were from 8am to 8 pm.
Source: https://timesofindia.indiatimes.com/city/delhi/ed-pegs-loss-to-govt-from-excise-scam-at-rs-2631cr/articleshow/95461533.cms