Excise Policy: Delhi HC Reserves Order On Businessman Arun R Pillai’s Bail Plea

Arun R Pillai

The Delhi High Court on Tuesday reserved its decision on the bail plea of Hyderabad-based businessman Arun Ramchandra Pillai, who is under investigation by the Enforcement Directorate in connection with the Delhi Excise Policy case.

Justice Neena Bansal Krishna reserved the order after hearing arguments from both sides. Pillai, currently in judicial custody, was represented by Advocates Nitesh Rana and Deepak Nagar.

In a related development, the Supreme Court granted bail to Bharat Rashtra Samithi (BRS) leader Kalvakuntla Kavitha. This decision is linked to cases filed by the ED and the Central Bureau of Investigation (CBI) concerning alleged corruption related to the now-revoked Delhi Excise Policy for 2021-22.

Pillai, a businessman from Hyderabad and an alleged close associate of K Kavitha, was arrested by the ED in March 2023. He is accused of receiving bribes from Sameer Mahendru, Managing Director of Indospirit, and passing them on to other individuals involved in the case.

The ED’s chargesheet claims that Pillai provided false statements under the Prevention of Money Laundering Act (PMLA) and allegedly destroyed or altered five mobile phones over two years, refusing to hand over the phones he used during the scam. Additionally, chats involving Pillai found on others’ devices were missing from his, suggesting intentional evidence destruction.

The ED argues that Pillai’s retraction of his statements was a tactic to derail the investigation, describing it as a legal maneuver to obstruct the proceedings.

Both the ED and the CBI have alleged that significant irregularities occurred while amending the Excise Policy, including undue favors to license holders, unauthorized fee waivers, and the extension of the L-1 license without proper approval. The illegal gains were allegedly funneled to officials involved, with false entries made in accounting records to avoid detection.

The case, which includes claims of a Rs 144.36 crore loss to the exchequer due to improper fee waivers, originated from a reference by the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.