[Breaking] Liquor Policy Scam: Delhi Court Remands BRS Leader K Kavitha Till July 3

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Special Judge Kaveri Baweja extended Kavitha’s custody after she was presented in court following a production warrant issued against her.

[Breaking] Liquor Policy Scam: Delhi Court Remands BRS leader Kavitha Till July 3

NEW DELHI: Today (3rd June): A Delhi court extended the judicial custody of Bharat Rashtra Samithi (BRS) leader K Kavitha until July 3 in connection with a money laundering case linked to an alleged excise policy scam. Last month, the Enforcement Directorate (ED) submitted a nearly 200-page prosecution complaint with annexures under the Prevention of Money Laundering Act (PMLA).

Special Judge Kaveri Baweja extended Kavitha’s custody after she was presented in court following a production warrant issued against her.

The court had issued this warrant after recognizing the charges against the BRS leader in the charge sheet submitted on May 29.

Additionally, the court granted bail to three co-accused — Prince, Damodar, and Arvind Singh. These individuals were charged by the ED but were not arrested during the investigation.

The ED had arrested Kavitha, the 46-year-old daughter of former Telangana Chief Minister K Chandrashekar Rao, at her Banjara Hills residence in Hyderabad on March 15.

The ED alleges that Kavitha was a key member of the ‘South Group,’ accused of paying Rs 100 crore in kickbacks to the Aam Aadmi Party (AAP) in exchange for a significant share of liquor licenses in Delhi, under the now-defunct 2021-22 excise policy.

The agency has described Kavitha as “one of the kingpins, a key conspirator, and beneficiary of the Delhi excise policy scam.” This case involves alleged corruption and money laundering in the formulation and implementation of the Delhi government’s 2021-22 excise policy.

On May 29, the Rouse Avenue Court acknowledged the Enforcement Directorate’s supplementary prosecution complaint (chargesheet) against Kavitha and others, including Chanpreet Singh, Damodar, Prince Singh, and Arvind Kumar.

The ED and CBI have alleged that irregularities occurred during the modification of the excise policy, including undue favors to license holders, waived or reduced license fees, and the extension of L-1 licenses without proper approval.

The agencies claim that the beneficiaries diverted illicit gains to the accused officials and falsified their accounting records to avoid detection. Allegedly, the Excise Department refunded approximately Rs 30 crore of earnest money deposit to a successful tenderer against established rules.

The case involves alleged corruption and money laundering in the creation and implementation of the Delhi government’s 2021-22 excise policy, which was meant to grant licenses to liquor traders. The policy allegedly facilitated cartelization and favored certain dealers who reportedly paid bribes, a claim the AAP has consistently denied.

The policy was later scrapped, and Delhi Lt Governor VK Saxena called for a Central Bureau of Investigation (CBI) probe, leading to the ED filing a case under the PMLA.

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.

READ PREVIOUS REPORTS ON K KAVITHA