The arrest of P Sarath Chandra Reddy, director of Aurobindo Pharma by the Enforcement Directorate on Thursday, in alleged Delhi liquor scam has put the ruling YSR Congress party in a tight spot.
Sarath Reddy is the brother of P Rohith Reddy, son-in-law of YSRC general secretary and Rajya Sabha member V Vijay Sai Reddy.
He was also one of the accused in the alleged quid pro quo case probed by the CBI against YSRCP president and present Andhra Pradesh chief minister Y S Jagan Mohan Reddy in 2012.
In March 2012, the CBI had filed a case against Sarath Chandra Reddy, then heading Trident Life Sciences, for allegedly receiving favours from the then Dr Y S Rajasekhara Reddy government in the form of land allotment at low prices, in return for investing in his son Jagan Mohan Reddy’s Jagati Publications Private Ltd.
On Thursday, Sarath Reddy, along with Benoy Babu, General Manager, International Brands, Pernod Ricard, was arrested by the ED in connection with its money laundering probe into the alleged irregularities in the now-scrapped liquor policy of the Delhi Government.
ED sources said Reddy was instrumental in the cartelisation of licences and played a role in moving alleged kickbacks in the entire liquor licensing process, adding that Babu was part of the cartelisation process.
However, in an unofficial leak to the media on Thursday night, the YSRC alleged that the arrest of Sarath Reddy had been made on no basis.
“The CBI had no evidence in the case and ED could not find anything in the search that was conducted a few days ago,” the party said.
It pointed out that during the raid on the company on September 16, the ED authorities had beaten up severely Earla Chandan Reddy, the CEO and Vice-President of the company – Trident Chemphar Ltd, a subsidiary of Aurobindo Pharma and forced him to sign some statements that were pre- written and carried with the ED officers.
The YSRC alleged that ED official Bhanu Priya Meena had beaten Chandan Reddy so harshly that it had resulted in one of his ears suffering hearing loss. It said Chandan Reddy on Thursday retracted the statements purported to have given to the ED.
“The ED lawyers made a case that statements are being conducted in the most sophisticated manner. Then why is it that more than 50% of the time employees and Sarath were called without summons and made to sit on 20 hour stretches. Some employees have been made to sit for 3 days with only 20-minute exit and entries. This can be verified with ED camera footage,” the YSRC said.