Liquor Policy: Delhi High Court Seeks ED's Response On BRS Leader K Kavitha's Bail Plea

The Delhi High Court on Friday issued notice on the plea moved by BRS leader K Kavitha seeking bail in the money laundering case related to the now scrapped liquor policy.

Justice Swarana Kanta Sharma sought response of the Enforcement Directorate (ED) and listed the matter for hearing on May 24.

Senior Advocate Vikram Chaudhary along with Advocate Nitesh Rana appeared for Kavitha. Special counsel Zoheb Hossain appeared for ED. The plea has been filed by Advocates Deepak Nagar and Mohith Rao.

Kavitha was denied bail by the trial court in the money laundering as well as the corruption case registered by the CBI on May 06. She is presently in judicial custody in both FIRs.

Kavitha was arrested on the evening of March 15 by the ED. She was in judicial custody when the CBI arrested her. This was after CBI got permission from court to interrogate Kavitha in jail.

AAP leaders Manish Sisodia and Sanjay Singh are also accused in the ED case. While Sisodia continues to remain in jail, Singh was recently granted bail by the Supreme Court pursuant to a concession given by the ED.

It is ED's case that the excise policy was implemented as part of a conspiracy to give wholesale business profit of 12 percent to certain private companies, although such a stipulation was not mentioned in the minutes of meetings of Group of Ministers (GoM).

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 the Delhi Chief Minister and then Deputy Chief Minister, wherein she along with other members of the South Group paid them kickbacks through a string of intermediaries and middlemen.

On the other hand, CBI alleged that Sarath Reddy participated in the liquor business in Delhi under the excise policy on Kavitha's assurance that she has contacts in the Delhi Government and she would help him in the business.

It further alleged that in November-December 2021, Kavitha asked Sarath Chandra Reddy to pay Rs. 25 crores at the rate of Rs. 5 crores per zone for the 05 retail zones allotted to him, as she had claimed that she herself had paid Rs.100 crores as upfront money to Aam Aadmi Party through Vijay Nair for getting favourable provisions in Excise Policy.

CBI also alleged that Kavitha was required to be examined in connection with the evidence surfaced during the further investigation of the case in respect of her involvement in the criminal conspiracy regarding formulation and implementation of the Excise Policy.