The Delhi High Court has granted bail to Raghav Magunta, son of YSR Congress Party MP Magunta Srinivasulu Reddy in connection with a money laundering case related to the alleged excise scam.
A single bench of Justice Dinesh Kumar Sharma who previously granted interim bail to Magunta, recorded that the bail was awarded due to the non-opposition of his bail plea by the Enforcement Directorate (ED).
The ED, in its response, conveyed that the accused’s cooperation in the investigation and assistance in tracing the Proceeds of Crime, which would have been otherwise challenging, warranted his bail.
“In light of the statement and facts provided above, the interim bail granted on 18.07.2023 for four weeks on medical grounds is now absolute,” the bench stated.
“Let the petitioner be released on regular bail furnishing a personal bond of Rs. 2,00,000 with two sureties of like amount to the satisfaction of the learned trial court,” it added.
The court also imposed specific conditions on Raghav Magunta, including the surrender of his passport, refraining from leaving the country without permission, and ensuring cooperation with the investigation. Additionally, it clarified that this order would not set a precedent for the advantage of other accused individuals.
On July 18, the court had granted interim bail to Raghav Magunta on account of his ill health.
The Case
According to the ED, Raghav Magunta is a significant figure in the conspiracy of cartelisation and kickbacks related to the Delhi Excise Policy 2021-22 scam. The agency alleges that Raghav, along with various others, hatched this conspiracy, and through his proxy person, Prem Rahul Manduri, he held 32.5 percent stakes in Indo Spirits, which possessed the L1 wholesale license. As part of the South group, Raghav was involved in a conspiracy in which approximately ₹100 crore was paid to the Aam Admi Party (AAP).
Raghav Magunta is the owner of liquor manufacturing units operating under the name of Enrica Enterprises Pvt Ltd, located in Chennai. The ED asserts that he also directly controlled two retail zones named Magunta Agro Farms Pvt Ltd, which violates the Excise Policy 2021-22, as a manufacturer is not permitted to hold either retail or wholesale operations.
Last year, both the ED and the CBI registered cases alleging irregularities in modifying the Excise Policy, extending undue favours to license holders, waiving or reducing the license fee, and extending the L-1 license without proper authority approval. The beneficiaries allegedly diverted the “illegal” gains to the accused officials and attempted to evade detection by making false entries in their books of accounts.
