Amaravati,  YSR Congress Party (YSRCP) MP Magunta Srinivasulu Reddy on Thursday denied involvement in Delhi liquor policy scam.

A day after his name figured in the remand report filed by the Enforcement Directorate (ED) after arrest of Amit Arora, the Lok Sabha member from Nellore alleged that there is a conspiracy against southern states.

He clarified that he has nothing to do with Amit Arora. "I don't know why my name has been included. Amit Arora is from north India. I have no business links with him," said the MP.

Srinivasulu Reddy also claimed that he and his son have no stakes in liquor business.

Along with Srinivasulu Reddy, the names of Telangana Chief Minister K. Chandrasekhar Rao's daughter and TRS leader K. Kavitha and Aurobindo Pharma director Sarath Reddy had figured in the remand report of the businessman Amit Arora.

The EC described the trio as key members of 'South Group'. According to the remand report, businessman Vijay Nair, who has already been arrested in the case, received kickbacks of Rs 100 crore on behalf of AAP leaders from a group, called 'South Group'.

The remand report says that the policy promoted cartel formations through back door awarded exorbitant wholesale (12 per cent) and huge retail (185 per cent) profit margins and incentivised other illegal activities on account of criminal conspiracy of leaders of AAP.

"The 12 per cent margin to the wholesalers was devised to extract half of it as a kickback to the AAP leaders. A per the investigation carried so far, Vijay Nair, on behalf of leaders of AAP has at least received kickbacks to the tune of Rs.100 crore from a group called South Group (controlled by Sarath Reddy, K Kavitha, Magunta Srinivasulu Reddy) by various persons including Amit Arora. The same has been disclosed by the arrestee Amit Arora in his statements," reads the report.

Sreenivasulu Reddy's son Magunta Raghava Reddy was questioned by the CBI in October along with Delhi Deputy Chief Minister Manish Sisodia.

The Magunta family is said to be in the liquor business for the last several years. A liquor business said to be owned by the family allegedly benefited from the liquor policy of Delhi government.