Excise Policy Scam: Delhi Court Refuses To Grant Interim Bail To Businessman Arun Pillai

New Delhi [India]: The Rouse Avenue Court of Delhi on Thursday dismissed Businessman Arun Pillai’s interim bail application in a money laundering case related to the alleged excise policy scam.

Arun Pillai recently moved bail plea citing medical grounds.
The Special Judge MK Nagpal said, this application filed on behalf of accused Arun Ramachandran Pillai seeking his interim bail on medical grounds is held to be devoid of any merits and the same is being dismissed.

The court observed that from his medical report that the applicant is being properly attended to and being provided adequate treatment for his alleged back or spine-related pains or problems in jail, not only by the visiting specialists in the field of orthopaedics but also through the two referral hospitals.

Even his X­ray examination got conducted from Safdarjung Hospital and his diagnosis of suffering from lumbar spondylosis with sacroiliitis is stated to be provisional only and is not final and these findings are yet to be confirmed by his MRI examination, which could not be conducted on the earlier date given as July 3 in Safdarjung Hospital and it is now scheduled to be done on November, 23, said the court.

Hence, in the considered opinion of this court, the above provisional diagnosis of the spinal problem of the accused cannot be considered to be severe enough to make ground for his interim release on bail in the present case of ED as the offence of money laundering alleged to have been committed by him in conspiracy with some public servants holding high offices and positions in the GNCTD and other accused is a serious offence having adverse repercussions on economy of the State and general public interests, further added the court in order.

Hyderabad-based businessman Arun Ramachandra Pillai was arrested by the ED in March 2023 in connection with the Delhi Excise policy scam.

Recently, the Enforcement Directorate (ED) has filed a supplementary complaint in the alleged liquor scam case, against businessmen Amandeep Dhall and Arun Ramachandran Pillai.

The chargesheet stated that Arun Pillai has given false statements u/s 50 of PMLA, 2002 during the investigation.

“Arun Pillai has actively participated in evidence destruction and has changed/used/destroyed 5 nos. of mobile phones in the span of 2 years. The phones used by Sh Arun Pillai during the period of the scam have not been produced by him during the investigation,” ED stated.

Further, the chats with Arun Pillai found from other persons’ phones have not been found from his phones which were seized during the search that is because Arun Pillai has indulged in the destruction of evidence, the chargesheet stated.

Arun Pillai has attempted to create a legal façade by allegedly filing a retraction of all his statements during the period of investigation given u/s 50 of PMLA. This act of Arun Pillai is only to create a legal façade and is motivated to derail the investigation, the agency further stated.

In the ED case, Businessman Amandeep Singh Dhal was arrested on March 1 and Hyderabad-based businessman Arun Ramchandra Pillai was arrested on March 6, 2023.

Arun Ramchandra Pillai a Hydrabad-based businessman was arrested by ED for allegations that he collected the bribes from another accused, Sameer Mahendru, managing director of lndospirit and handed it over to the other accused.

The ED and the CBI have alleged that irregularities were committed while modifying the Excise Policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority’s approval.

The beneficiaries diverted “illegal” gains to the accused officials and made false entries in their books of account to evade detection.

An alleged, the Excise Department had decided to refund the Earnest Money Deposit of about Rs 30 crore to a successful tenderer against the set rules. Even though there was no enabling provision, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19.

This allegedly caused a loss of Rs 144.36 crore to the exchequer, which has been instituted on a reference from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.