In yet another development that lands the ruling Bharat Rashtra Samithi leaders in a tight spot, the Central Bureau of Investigation on Wednesday announced the arrest of Hyderabad-based chartered accountant Gorantla Butchibabu for his alleged role in formulation and implementation of Delhi Excise Policy.
Butchibabu had been the chartered accountant of BRS legislator and Telangana chief minister K Chandrasekhar Rao’s daughter Kalvakuntla Kavitha.
He was also the chartered accountant for Robin Distilleries directors Boinapalli Abhishek and Ramachandra Pillai, who were earlier arrested in the Delhi liquor scam.
A few months ago, the Enforcement Directorate conducted raids on the residences and offices of Butchibabu, Boinapalli and Pillai in Hyderabad and seized several key documents.
Now, the CBI arrested Butchibabu on the grounds that he had caused wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners in the Delhi Excise Policy.
“He will be produced in the court today,” the CBI said in a statement.
The ED which had earlier questioned the witnesses in the scam said it had exposed the involvement of Hyderabad-based businessman and Aurobindo Pharma director P Sarath Chandra Reddy, who floated entities like Sri Avanathika, Trident and Organomix Eco-Systems Private Limited.
Indo-Spirit owner Sameer Mahandru, who was first arrested last September, told the ED that scam accused Arun Pillai had a close association with Sarath Chandra Reddy.
He said Boinapally and Butchibabu, who acted as chartered accountant of the ‘South Group’ cartel of the liquor scam, were associates of Pillai and had organised meetings at a hotel in Delhi where the agenda was to invest in the Delhi liquor scam.
According to the charge sheet filed by the ED in the court, Mahendru had stated that Pillai was representing Kavitha. He and South Group had over multiple conversations revealed to Mahandru their actual investors and political connections.
Another accsued Vijay Nair also spoke about Kavitha and Sarath Reddy. Mahandru had met Kavitha at her residence in Hyderabad in the presence of Sameer, Sarath Reddy and Arun Pillai.
The CBI, which may seek custody of Butchibabu, is expected to grill him about the involvement of Kavitha in the entire scam.
“Definitely, the noose is tightening around her. She might also be taken into custody in a few days,” sources said.