A Director of Aurobindo Pharma and a General Manager of liquor company Pernod Ricard have been arrested by the Enforcement Directorate (ED) In connection with the money laundering probe into the now scrapped Delhi excise policy.
Aurobindo Pharma Director and promoter P Sarath Chandra Reddy and Pernod Ricard General Manager (International Brands) Benoy Babu were placed under arrest on Wednesday night under sections of the Prevention of Money Laundering Act (PMLA) after investigators felt they were "evasive" during the questioning, sources said on Thursday.
A public-listed company, Hyderabad-based Aurobindo Pharma is a global player in the generic drugs market while Pernod Ricard markets premium liquor brands. Aurobindo Pharma said in a regulatory filing to bourses that it has learnt about Reddy's arrest by the ED and the company "is in the process of ascertaining further details and will do further disclosures as appropriate."
ED officials claimed both Reddy and Babu were involved in the formulation of the Delhi excise policy along with government officials. While Reddy played an important role in the cartelisation of licences, they alleged, Babu was also part of it.
The ED money laundering case is based on the FIR registered by the CBI on August 17, accusing Delhi Deputy Chief Minister Manish Sisodia and others of irregularities in the formulation and execution of the Delhi Excise Policy brought in November last year that led to an alleged loss to the state exchequer.
The excise policy came under the CBI and ED scanners after Lieutenant Governor VK Saxena recommended a probe following a report by the Chief Secretary.
While Reddy was questioned twice by the ED in this case, the agency has arrested three people in this case, including Sameer Mahandru, Managing Director of liquor manufacturing company Indospirit.
The ED had conducted multiple raids across the country, including the premises of a personal assistant of Sisodia. The PA was later questioned by the ED.
The agency has questioned AAP MLA Durgesh Pathak and minister Satyendar Jain, currently in jail in another money laundering case.