The money laundering case stemmed from a complaint by the Central Bureau of Investigation (CBI).
New Delhi:
A Delhi court on Saturday handed Raghav Magunta, the son of YSR Congressman Magunta Srinivasulu Reddy, to the Enforcement Directorate (ED) custody until February 20 for alleged money laundering against Delhi’s GST policy.
Duty Judge Naresh Kumar Laka passed the order on Manguta’s 10-day guardianship application on the basis of the ED’s application, alleging that he participated in and knowingly facilitated various possession, The process or activity of using, transferring, etc. the proceeds of crime with a value of at least Rs 1.8 crore.
Moreover, even after multiple opportunities and taped statements from other defendants, he failed to cooperate with the investigation or disclose facts that were material to the investigation and of which he had exclusive knowledge.
Therefore, the ED told the judge that a custodial trial for Magunta is a priority.
It further said that those arrested would also need to face digital and physical records seized during the 189 search operations conducted so far by the ED.
The ED told the court that Magunta will need to interrogate other persons/associates/entities of interest while in custody to determine the full modus operandi of the crime and to unearth all proceeds of crime.
The ED cited various instances which showed that the defendants were involved in a cartel involving persons who caused loss to the government’s finances through the alleged wrong formulation and implementation of Delhi Excise Duty policy.
“Given the above discussion, and to provide the ED with an opportunity to get to the bottom of (understand) the problem through custodial interrogation, which is an important part of the investigation, this application is allowed.” The judge said: Appear in the relevant court on February 20.”
The defendant was arrested on Friday night under the Prevention of Money Laundering Act (PMLA).
Magunta is the ninth person arrested by the ED in the Delhi GST policy case and the third this week.
Earlier this week, the agency arrested Gautam Malhotra, son of a former SAD MLA from Punjab Deep Malhotra, and Rajesh Joshi, director of an advertising firm called Chariot Productions Media Private Limited.
The ED alleges that the father-son duo were part of a cartel of liquor retailers, wholesalers and manufacturers formed as part of the now-defunct Delhi consumer policy.
So far, the ED has filed two charge sheets, or indictments, in the case.
The money laundering case arose from the Central Bureau of Investigation (CBI) FIR.
Delhi Deputy Chief Minister Manish Sisodia and other tax officials of the government have been named as defendants in the CBI and ED complaint.
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
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