Delhi HC grants bail to businessman Arun Pillai in excise policy case

New Delhi: The Delhi High Court on Wednesday granted bail to Hyderabad-based businessman Arun Ramachandra Pillai in connection with the money laundering case linked to the alleged liquor policy scam.

As per the Enforcement Directorate (ED), Pillai is a member of the 'South Group' cartel, allegedly including BRS leader K. Kavitha, Aurobindo Pharma promoter Sarath Reddy, Srinivasulu Reddy, his son Raghav Magunta and others.

In October last year, a bench of Justice Swarana Kanta Sharma had issued notice on Pillai’s bail plea and sought the Enforcement Directorate (ED)'s response in the matter.

Before this, the trial court, in June 2023, had refused him bail saying that his involvement in the matter was more serious than that of some other accused.

Special Judge M.K. Nagpal of the Rouse Avenue Court had said: "This court is prima facie of the view that there is a genuine case made out by the investigating agency before this court showing active involvement of the applicant in the commission of the alleged offence of money laundering and thus, this court is not able to arrive at any finding contrary to the said view."

The trial court had further said that Pillai was not only involved in a mere conspiracy, but based on initial evidence, he was also linked to various actions concerning the proceeds. These actions involved hiding, owning, obtaining, or utilising the proceeds and presenting them as legitimate assets.

Moreover, the court had stated that the evidence gathered against Pillai indicated, on the surface, that he willingly participated in these activities and was fully aware of their nature and intentions. It had highlighted that Pillai played a significant and active role in the conspiracy, the formation of a cartel, and the payment and repayment of kickbacks.

Pillai, who was arrested on March 6, 2023, by the Enforcement Directorate (ED) in connection with the alleged excise policy scam, had received interim bail in December last year citing his wife's medical condition following surgery.