HYDERABAD: The Enforcement Directorate identified Hyderabad-based businessman Sharath Chandra Reddy as a kingpin and a major beneficiary of the Delhi excise policy scam.
The ED’s remand report stated that Sharath Chandra was effectively controlling five retail zones through his group company Trident Chemphar Pvt Ltd and proxy entities Organomixx Ecosystems and Sri Avantika Contractors, in violation of the excise policy that barred a party from controlling more than two zones.
“Employees of Sharath Chandra Reddy disclosed that he was handling all operation-related matters of these 3 L 7 companies. Sharath Chandra Reddy Penaka was a key partner in the biggest cartel (named South Group by Dinesh Arora in his statement) of manufacturers, wholesalers and retailers. Partners of this cartel, such as Sameer Mahandru, own liquor manufacturing units along with Pernod Ricard (PRI), which is one of the biggest manufacturers in the country,” an ED official said.
Sharath Chandra Reddy had financial interests in the entity through proxies. It was alleged that Reddy was channelling investments into lndoSpirits. The South Group, led by Sharath Reddy, controlled nine retail zones through a web of proxies and Benami entities.
“This is in clear contravention of the objectives of the Delhi Excise Policy, 2021-22. Sharath Chandra Reddy had direct control of five retail zones (Trident Chemphar Pvt Ltd and proxy entities namely, Organomixx Ecosystems and Sri Avantika Contractors) and along with other members of the cartel also collectively controlled four zones. This cartel effectively controlled about 30 per cent of the Delhi liquor market through a series of illegal activities involving giving kickbacks, using benami and proxy entities, and conspiracy with various stakeholders in the liquor industry,” the ED report stated.
