KCR’s daughter K Kavitha arrested in Delhi liquor scam: Her link to the case

Bharat Rashtra Samithi (BRS) MLC K Kavitha was arrested on Friday evening after the Enforcement Directorate (ED) and the Income Tax department raided her residence in Hyderabad.

The raids were in connection with the alleged Delhi excise policy-linked money laundering case, in which she has been named as an accused, as per Indian Express.

Kavitha, the daughter of BRS MLC and former Telangana CM K Chandrasekhar Rao, was brought to Delhi for further questioning. She is likely to be produced before a special court in Delhi today afternoon, according to ANI.

Let’s take a closer look.

Kavitha’s link to the case

According to the news agency, the arrest order indicated that the probe agency holds grounds to suspect that Kavitha has committed an “offence punishable under the provisions of the Prevention of Money Laundering Act, 2002.”

The ED alleged that Kavitha was part of the “South Group” and allegedly gave Aam Aadmi Party (AAP) leaders bribes of Rs 100 crore. These payments were purportedly paid under the now-scrapped Delhi excise policy in return for illegal benefits.

“South Group comprises Telangana MLC Kavitha, Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, and others. The South Group was being represented by Pillai, Abhishek Boinpalli, and Butchi Babu,” ED stated as per ANI.

The ED probe further showed that Pillai was an accomplice, taking part in kickbacks from the South Group and then recovering these funds from Delhi-based companies.

According to the ED, as per the statement of Butchi Babu (the accountant), “there was a political understanding between K Kavitha and the (Delhi) chief minister (Arvind Kejriwal) and the (then Delhi) deputy chief minister (Manish Sisodia). In that process, K Kavitha also met Vijay Nair on 19-20 March 2021,” reported PTI.

Kavitha has refuted the claims and referred to the ED notices as “Modi notices.” Manish Sisodia, Sanjay Singh, and Vijay Nair have already been arrested in relation to the case.

A parallel investigation is being conducted by the ED and CBI.

According to the Indian Express, on 1 December 2022, Kavitha’s statement was recorded at her Hyderabad residence by a team of CBI officials. The next day, she received a notice from the CBI under section 160 of the CrPC asking her to join the inquiry on 6 December about the investigation into suspected corruption in the excise policy that the Delhi government had previously removed.

She was questioned multiple times at the ED headquarters and had to turn in her cell phones to the federal agency for examination last year.

As per News18, Kavitha received a summons from the CBI last month over the same case. She was summoned to appear before the central probe agency for the second time, however, she declined it, stating in a letter that she had “pressing onerous engagements.”

Kavitha had already received notices from the IT and ED to come in person so they could record her statement, but she had contested the notices in the Supreme Court and declined to show up.

Dramatic arrest

Kavitha and her husband, D Anil Kumar were at their home when at least 10 officers from both agencies in New Delhi conducted searches during the day.

The 45-year-old’s brother, BRS working president K T Rama Rao, and her cousin, T Harish Rao, arrived at her home shortly after she was placed under arrest.

Both argued and demanded to see a transit warrant from the ED officers.

KTR claimed that an “illegal arrest warrant” had been obtained by the ED for Kavitha. KTR was instructed not to “obstruct” the team’s work by ED officials.

Sravan Dasoju, a spokesperson for the BRS, described the ED raids as “politically motivated” earlier in the day and claimed that the Congress and BJP are working “hand in glove to harass leaders” of the party led by KCR.

“Wherever (Prime Minister Narendra) Modi goes ED and IT (Income Tax) either precedes or succeeds. That is what is happening in Telangana. They want to create a panic situation in the BRS. The ED and IT which are working at the behest of BJP are not bothered about the Congress leaders of Telangana who have illegally obtained so much wealth,” the BRS leader said as per PTI.

What’s next for Kavitha

K Kavitha was reportedly taken to Delhi to finish the series of evidence in the case of the Delhi liquor policy scam, according to Mint which cited News18.

Senior Aam Aadmi Party (AAP) leaders Sanjay Singh and Manish Sisodia, who are being held in judicial custody in this case, are also expected to confront Kavitha.

Kavitha would also meet with Amit Arora, a crucial witness who ‘confessed’ to the ED on the purported ‘bribes that were designed and secured in the Delhi liquor policy’ scam case.

Additionally, it’s expected that Kavitha will see Delhi chief minister and AAP leader Arvind Kejriwal, who has been avoiding ED summons.

Her legal team will move the Supreme Court today to contest her arrest by the ED, even though it is difficult to obtain bail under the Prevention of Money Laundering Act (PMLA).

According to media reports, her lawyers will attempt to ask for an urgent hearing before the top court on Saturday in order to contest the arrest.

Delhi liquor scam

The liquor excise policy under the AAP government has undergone numerous modifications in 2021.

As per another report by News18, among these were the discontinuation of state-run liquor stores and the issuance of operating licenses to private entities. The legal drinking age was also lowered from 25 to 21 years old.

Specific requirements for liquor brand registration were put out, including variables like cost and sales figures outside of Delhi.

In addition, the government suggested raising the yearly licence price for alcohol vending from Rs 8 lakh to Rs 75 lakh.

The move coincided with the Delhi government’s withdrawal from the retail liquor business, as 849 private vendors won licences through competitive bidding, the report said.

However, the implementation of the policy was clouded by the opposition’s allegations of corruption and favouritism during the licencing process.

The AAP faced additional difficulties when Lieutenant Governor VK Saxena of Delhi opened a probe into the new excise policy. A report from the top official in Delhi prompted Saxena to formally request an investigation by the CBI.

The government declared that the excise policy would be scrapped amid the growing criticism.

With inputs from agencies