Liquor Policy: Delhi Court Remands BRS Leader K Kavitha To Further ED Custody Till March 26

A Delhi Court on Saturday further remanded Bharat Rashtra Samithi (BRS) leader K Kavitha to Enforcement Directorate (ED) custody till March 26 in the money laundering case connected with the alleged liquor policy scam.

Special CBI judge Kaveri Baweja of Rouse Avenue Courts passed the order after Kavitha was produced in court on the expiry of her ED remand. The central probe agency had sought further 5 days custody for the BRS leader.

The court extended ED remand of K Kavitha for further 3 days. She will now appear before court on March 26 at 11 AM.

Kavitha was arrested on the evening of March 15 by the ED hours after the agency and the Income Tax department conducted searches at her Hyderabad residence.

As per the arrest memo, Kavitha, daughter of former Telangana chief minister K Chandrashekar Rao and a Telangana Legislative Council member, was arrested by the central probe agency at 5:20 pm from her residence at Banjara Hills in Hyderabad. She was remanded to ED custody till March 23.

During the hearing today, special counsel Zoheb Hossain appearing for ED submitted that statements of four persons were taken and Kavitha was confronted with the said statements. 

“She has conspired in the payment of kickbacks of over Rs. 100 crores,” Zoheb said.

He added that the data in Kavitha's phone was also analyzed and that she was confronted with forensic science report which reflected there was deletion of data during ED investigation.

He further said that some of the details of business of Kavitha's nephew were also sought to which the BRS leader responded that she was not aware of the same.

“During search, mobile (of the nephew) was seized. But this person failed to appear. Several summons have been issued to him. Search is going on in his premises as we speak. We have also filed application for interrogation of Sameer Mahendru for utilisation of proceeds of crime of the nephew….We need remand of 5 more days on the same terms and conditions,” Hossain said.

Advocate Nitesh Rana appearing for Kavitha submitted that ED was seeking certain documents from the BRS leader but it is not possible to provide the same till the time she is in the custody of the central probe agency.

”It won't be possible till the time she is granted bail. Otherwise how it is possible in ED custody,” he said.

Kavitha also moved an application for bail in the case. However, Hossain submitted that the bail plea is not maintainable at this stage.

Rana then said that the bail plea be heard on the same date when Kavitha's ED custody would end.

On March 19, Kavitha withdrew from the Supreme Court her plea challenging the ED summons. Yesterday, the Apex Court issued notice on her plea challenging her arrest and asked the BRS leader to approach the trial court for bail.

In the earlier remand application, ED alleged that Kavitha is “one of the kingpins, a key conspirator and beneficiary” of the excise policy scam.

The agency alleged that Kavitha along with other members of the South Group namely Sarath Reddy, Raghav Magunta and Magunta Srinivasulu Reddy, conspired with top Aam Aadmi Party leaders and gave them kickbacks to the tune of Rs. 100 Crore and in exchange, got undue favours in the formulation and implementation of the excise policy.

ED had also alleged that Kavitha orchestrated a deal with Delhi Chief Minister and then Deputy Chief Minister Manish Sisodia, wherein she along with other members of the South Group paid them kickbacks through a string of intermediaries and middlemen.

About the Case

In this case, the anti-money laundering agency has issued summons to K Kavitha as a part of its wider probe into the alleged financial irregularities surrounding the now-scrapped liquor policy and the role of a purported 'south liquor lobby'.

In March 2023, the ED summoned her to appear in person in Delhi for questioning. In the same month, the central agency's summons were challenged by the BRS leader.