HC seeks ED stand on Arun Ramchandran Pillai's bail plea

Arun Ramchandran Pillai, the alleged frontman of Bharat Rashtra Samithi leader Kavitha Kalvakuntla, has submitted that he is neither the frontman nor the representative of Kavitha of any liquor cartel allegedly involved in the Delhi liquor excise scandal.

According to the Enforcement Directorate (ED), Pillai, a Hyderabad-based businessman and co-accused in the Delhi government's now scrapped excise policy case is Kalvakuntla's "benami" or frontman.

In his bail plea filed earlier this month before the Delhi High Court, Pillai has submitted that the entire case made out against him by the ED is solely based on statements of witnesses and co-accused recorded under Section 50 of the Prevention of Money Laundering Act (PMLA). Statements recorded under the said section are admissible in a court of law.


Advocate Nitesh Rana, appearing on behalf of Pillai, argued before the high court that the admissibility of such statements is to be examined at the stage of trial. Rana added that since the entire case is solely based on such statements, his client cannot be kept behind bars.

Pillai was arrested by the ED in March. Taking stock of the contentions raised by Pillai, the Delhi high court has issued a notice to the ED seeking its response to Pillai's bail plea. On June 8, a trial court here had dismissed Pillai's plea for bail, saying his role was more serious than that of some other accused who are still in jail and that prima facie, the ED's case was genuine.

The ED has alleged that Arun Ramchandran Pillai is Kalvakuntla's "benami" or frontman and "represented the south group", an alleged liquor cartel linked to Aurobindo Pharma promoter Sarath Reddy, YSRCP's Ongole MP Magunta Srinivasulu Reddy, and Kalvakuntla, among others.

The ED has alleged Pillai represented the 'benami investments' of Kalvakuntla in the case.

Kavitha, who stands questioned by the ED, has strongly denied the allegations levelled against her.

The ED's money laundering case stems from a CBI FIR.

According to the CBI and the ED, irregularities were committed while modifying the Delhi Excise Policy 2021-22 and undue favours were extended to licence holders.

The Delhi government had implemented the excise policy on November 17, 2021, but scrapped it at the end of September 2022 amid allegations of corruption.