Justices B R Gavai and K V Viswanathan were reviewing Kavitha’s bail petitions related to corruption and money laundering cases under investigation by the CBI and ED.
![[Breaking] Supreme Court Grants Bail to BRS Leader K Kavitha, Asks Probe Agencies "What Material Do You Have to Show Kavitha's Involvement"](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/08/image-174.png?resize=820%2C524&ssl=1)
New Delhi: On Tuesday(27th Aug): The Supreme Court has granted bail to BRS leader K Kavitha in the excise policy irregularities case, set aside the Delhi High Court’s previous decision that had denied her bail.
READ ALSO: “‘Powerful People’ Pressuring Witnesses to Withdraw Statements”: ED in K. Kavitha Hearing
Subsequently, the Supreme Court directed the ED and CBI to present evidence proving BRS leader K Kavitha’s involvement in the alleged Delhi excise policy scam.
![[Breaking] Supreme Court Grants Bail to BRS Leader K Kavitha, Asks Probe Agencies "What Material Do You Have to Show Kavitha's Involvement"](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/08/image-28-3.png?resize=820%2C495&ssl=1)
Justices B R Gavai and K V Viswanathan were reviewing Kavitha’s bail petitions related to corruption and money laundering cases under investigation by the CBI and ED.
The court stated:
“We find that the learned single judge made a fundamental error in applying the proviso. Therefore, we grant the appeal, set aside the contested orders, and direct that the appellant be granted bail.”
The Court stated:
“The investigation is complete, and a chargesheet has been filed. Custody of the appellant is no longer necessary, especially after she has been imprisoned for 5 months. Given the improbability of a swift trial conclusion, continued detention should not serve as a punishment. As per various rulings, undertrial custody should not become punitive.”
It also emphasized:
“Kavitha is entitled to the beneficial treatment for women under Section 45 of the Prevention of Money Laundering Act (PMLA).
The proviso to Section 45(1) mandates special consideration for women.”
The Court criticized the Delhi High Court’s remarks, which suggested that an educated and sophisticated woman is ineligible for bail under the PMLA’s beneficiary provisions:
“If the Delhi High Court’s view were accepted, it would imply that no educated woman could receive bail. This approach would impose an unfair standard across Delhi’s courts. Instead, courts should not discriminate between individuals based on their status.”
The Supreme Court echoed this concern in its order, noting the High Court’s contradictory reasoning:
“While acknowledging Kavitha’s education and social contributions, the High Court wrongly concluded that she was not vulnerable and thus ineligible for bail benefits under Section 45 PMLA.”
The Court further asserted:
“Courts should show greater sensitivity towards women accused under the PMLA. The single judge’s application of the proviso was fundamentally flawed.”
Senior advocate Mukul Rohatgi, representing Kavitha, argued for bail, asserting that the investigations by both agencies were complete. He also referenced the Supreme Court’s recent bail decision for AAP leader Manish Sisodia, a co-accused in the cases.
Additional Solicitor General S V Raju, representing the agencies, accused Kavitha of tampering with evidence by destroying her mobile phone.
Rohatgi dismissed this claim as “bogus.”
The bench inquired,
“What evidence is there to show her involvement in the crime?”
The court is currently deliberating on the matter. On August 12, it had asked the CBI and ED to respond to Kavitha’s challenge against a July 1 Delhi High Court order denying her bail. The High Court had rejected her bail applications, labeling her as a principal conspirator in the criminal conspiracy surrounding the now-scrapped Delhi Excise Policy 2021-22.
READ ALSO: #BREAKING BRS Leader K Kavitha Produced in Court in Delhi Excise Policy Scam
Kavitha, aged 46, was arrested by the ED on March 15 at her Hyderabad residence and by the CBI on April 11 at Tihar jail.
She has denied all charges.
Earlier, Aam Aadmi Party (AAP) leaders Sanjay Singh and Manish Sisodia were granted bail by the top court.
Who Is K Kavitha?
K Kavitha, a prominent political figure and daughter of former Telangana Chief Minister K Chandrashekar Rao, founded Telangana Jagruthi in August 2006 to promote Telangana’s culture, traditions, and festivals. She began her political career in 2014 by winning a Lok Sabha seat from Nizamabad. However, her inability to address issues faced by turmeric farmers led to her defeat in the 2019 elections to BJP’s Dharmapuri Aravind.
After her electoral loss, Kavitha largely stayed out of the public eye until October 2020, when she was elected to the state Legislative Council from Nizamabad. She was re-elected to the Legislative Council in December 2021.
How Is K Kavitha Linked To The Delhi Excise Policy Case?
The Enforcement Directorate (ED) has alleged Kavitha’s involvement with the “South Group,” a lobby of liquor traders aiming to influence the now-abandoned Delhi excise policy for 2021-22.
In December 2022, the Central Bureau of Investigation (CBI) summoned Kavitha as a witness, focusing on her links to individuals like P Sarath Chandra Reddy of Aurobindo Pharma and Gurugram-based businessman Amit Arora. Kavitha was also questioned about her frequent changes of cell phone devices.
Following the arrest of Hyderabad-based businessman Arun Ramchandran Pillai, the ED summoned Kavitha for interrogation to confront her with Pillai, who is believed to be a frontman for the South Group cartel involved in shaping the excise policy.
The ED claimed that the South Group received undue favors and secured stakes in wholesale and retail liquor businesses beyond what was permitted by the policy. According to the ED, one of the accused, Vijay Nair, received kickbacks totaling at least Rs 100 crore from this group, which allegedly involved Sarath Reddy, Kavitha, and Magunta Srinivasulu Reddy on behalf of AAP leaders.
Read Previous Reports on K Kavitha
