In order to achieve the goals of “monopoly and cartelization,” the excise department and public employees of the ruling AAP were allegedly given bribes by the “South India” liquor lobby.
Charges of money laundering against one of the “kingpins” of the Delhi Excise Policy case registered and under investigation by the Enforcement Directorate (ED) have been brought before a special court in the nation’s capital.
Special judge MK Nagpal noted that the five accused — Sameer Mahandru, M/s Khao Gali Restaurants Pvt Ltd, M/s Bubbly Beverages Pvt Ltd, Indo Spirits, and M/s Indospirit Distribution Ltd — were either directly or indirectly involved in the generation, concealment, or possession of the proceeds of crime alleged in the case based on the oral and documentary evidence presented before him.
The order stated, “Since sufficient grounds exist for proceeding further in the matter against all five accused, they are directed to be summoned to appear and face trial before this court for the above-mentioned offence, although some further investigation with regard to the other persons/entities involved in the case and to trace the remaining proceeds of crime is still pending.”
The five defendants were the subject of a money laundering prosecution complaint that the ED filed on November 26.
Prior to this, the Central Bureau of Investigation (CBI) had filed a complaint over alleged irregularities in the formulation and execution of the Delhi Excise Policy for 2021–2022. On July 20, 2022, Lieutenant Governor VK Saxena filed a complaint, leading to the case’s registration.
In addition to Manish Sisodia, the deputy chief minister and minister of excise for Delhi, the CBI’s first information report (FIR) listed the names of 14 other people, including several excise department employees.
They were all allegedly involved in a criminal conspiracy during the relevant era, when the Excise Policy was still being developed, together with other unnamed and unidentified people and organisations.
It was claimed that as part of the conspiracy, various loopholes in the Policy were deliberately left or constructed with the objective to be later exploited in order to favour some licensees and conspirators during the post-bid phase.
The case’s details showed that, in order to achieve “monopoly and cartelization” among liquor producers, wholesalers, and retailers by breaking the law, some individuals in the liquor business from “South India” allegedly paid bribe money through hawala channels to some employees of Delhi’s excise department and of the ruling Aam Aadmi Party (AAP).
According to reports, the “persons from South” would received their bribes either through wholesaler profit margins or through credit notes that the wholesalers would issue to retail stores that belonged to or were under their influence in southern India.
Mahandru was alleged to have participated “actively” in both the establishment of the “cartelization and monopoly” as well as the kickbacks. The agency asserted that this cost the exchequer a loss of 2,873 crore.
Additionally, the ED said that the AAP government had paid lawmakers and other public officials kickbacks totaling almost 100 crore. Additionally, it was allegedly discovered that some of these bribes were returned or re-cooped to the “South liquor lobby” from the profit margins of distributors via a variety of methods, including bank transfers and credit notes.
Mahandru and his businesses allegedly managed to obtain retail zone licences despite the fact that he also operated a distillery.
“…as a result of the cartelisation and monopoly achieved in furtherance of the above criminal conspiracy, a total loss of approximately 2,873 crores was caused to the exchequer of GNCTD, and accused 1 and the connected companies/entities were found to have been involved in the generation of approximately 295,45 crores in criminal proceeds,” ED alleged.
The court summoned the five defendants on January 5, 2023, after taking note of the money laundering charges brought against them.
Special Public Prosecutor NK Matta acted as the ED. Dhruv Gupta and Harshil Gupta represented Mahandru in court.
Case Title: ED v. Sameer Mahandru & Ors
Written By: Lakshman Singh, BBA LLB (Hons.), Shri Ramswaroop Memorial University, Lucknow
