The Enforcement Directorate has claimed in its supplementary chargesheet filed in connection with the excise policy case that the Delhi government lost revenues of about Rs 581 crore by providing a margin of 12 per cent to private wholesalers (L1 licence holders).
This 12 per cent commission was given to them by not paying heed to the expert committee headed by IAS Ravi Dhawan, as per the chargesheet.
The ED claimed that the loss was diverted to ostentatious profits to the wholesalers, including accused M/s Indo Spirits which was used to recoup the kickbacks paid in advance by the 'south group'.
"In order to create a device for continuous payment of kickbacks to Vijay Nair, an unheard of margin of 12 per cent was provided to the private wholesalers contrary to the recommendations of the expert committee headed by Ravi Dhawan, then excise commissioner, which suggested for a single government entity as wholesaler for Delhi.
"On this account, the government lost revenues of Rs 581 crore that would have accrued to it in case the expert committee recommendations were accepted by the government, which in the subject policy was assigned to private players, only to fill the personal coffers of AAP leaders," the chargesheet read.
The ED has also claimed in the chargesheet that the 'south group' directly and indirectly controlled nine retail zones, which included five retail zones of Sarath Reddy.
In some cases, the control was via financing of the EMD (earnest money deposit) for the process, ostensible investments, relatives/dummies/proxies.
Apart from the direct profits accruing from the wholesale business of Indo Spirits, the modus operandi for recovering the kickback paid in advance by the 'south group', monies in the form of outstanding from the ostensible sales from the wholesale of Indo Spirits to retail of the 'south group' with an understanding that the outstanding was not to be recovered and the amount will be shown as recoverable in the books of account, the chargesheet said.
"Sarath Reddy's controlled entities owed over Rs 60 crore to Indo Spirits, which is shown as outstanding but was not meant to be recovered as part of the conspiracy," the ED claimed.