[BREAKING] K Kavitha Bail Plea | Delhi HC Seeks ED Response

The Delhi High Court Today (May 10th) issued notice to the Enforcement Directorate (ED) on the bail plea filed by Bharat Rashtra Samithi leader K Kavitha in the money laundering case connected to the Delhi excise policy.

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NEW DELHI: The Delhi High Court today in the ongoing legal drama surrounding Bharat Rashtra Samithi leader K Kavitha, issued a notice to the Enforcement Directorate (ED) regarding her bail plea. This plea relates to accusations of money laundering linked to the controversial Delhi excise policy.

Justice Swarana Kanta Sharma has directed the ED to submit a response to Kavitha’s request for bail and scheduled the next hearing for May 24. This legal move came after a special court denied her bail on May 6, leading Kavitha to seek relief from the High Court.

Kavitha’s legal troubles began with her arrest on March 15 in Hyderabad by the ED. She is implicated in a broader investigation into alleged financial irregularities associated with the Delhi excise policy. This scandal reportedly involved manipulating the 2021-22 excise policy to monopolize and cartelise the liquor trade in Delhi, favoring certain groups from South India.

Further complicating the matter, the Central Bureau of Investigation (CBI) also recorded Kavitha’s arrest on April 11. The case claims that the manipulated policy allowed these groups to funnel a portion of their profits to the Aam Aadmi Party (AAP), purportedly to fund its campaign in the Goa assembly elections.

The case against Kavitha and other suspects has been framed under the Prevention of Corruption (PC) Act and the Indian Penal Code (IPC). Additionally, the ED is conducting a separate investigation into the money laundering allegations linked to this case.

Previously, the trial court had also declined Kavitha’s request for interim bail in connection with the ED’s probe, reflecting the severity and complexity of the allegations she faces.

BACKGROUND

K Kavitha, a BRS leader, was arrested by the Central Bureau of Investigation (CBI) while in judicial custody for an Enforcement Directorate (ED) case. The CBI’s remand application mentioned the necessity of her arrest for custodial interrogation to establish the larger conspiracy related to the formulation and implementation of the Excise Policy. It also aims to uncover the money trail of illicitly obtained funds and the involvement of other accused individuals, including public servants.

The ED had previously arrested K Kavitha, a Member of the Legislative Council (MLC) in Telangana, on March 15 in connection with the alleged liquor policy scam. The CBI initiated its inquiry based on the Delhi Chief Secretary’s report, which highlighted prima facie violations of various acts and rules governing the Excise Policy.

CBI remand application stated that Kavitha Kalvakuntla’s arrest was necessary for her custodial interrogation to confront her with evidence and witnesses, uncovering a broader conspiracy related to the formulation and execution of the Excise Policy.

Additionally, it aimed to trace the money trail of illegally obtained funds and establish the involvement of other accused individuals, including public servants, as well as reveal information exclusive to her knowledge.

The CBI and the ED have alleged irregularities in the modification of the excise policy, including granting undue favors to license holders, waiving or reducing license fees, and extending the L-1 license without proper approval. The beneficiaries of these actions allegedly diverted illegal gains to the accused officials and manipulated their account books to evade detection.

According to the allegations, the Excise Department decided to refund approximately Rs 30 crore as earnest money deposit to a successful tenderer, violating the established rules. Furthermore, due to the COVID-19 pandemic, a waiver on tendered license fees was allowed between December 28, 2021, and January 27, 2022, despite the absence of a legal provision. The probe agencies claim that these actions resulted in an alleged loss of Rs 144.36 crore to the exchequer.

The ED arrested Kavitha (46) from her Banjara Hills residence in Hyderabad on March 15.

Click Here to Read Previous Reports on K Kavitha

Click Here to Read Previous Reports on Arvind Kejriwal

Click Here to Read Previous Reports of Delhi Excise Policy Scam

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