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BRS MLC K Kavitha arrested in Delhi liquor policy case: What are charges against her?
BRS MLC K Kavitha was reportedly being taken to Delhi for questioning in connection with a money laundering probe linked to the Delhi excise policy scam case. What are the charges against her?
The Enforcement Directorate (ED) arrested BRS leader K Kavitha in Hyderabad on Friday. She was being taken to Delhi for questioning in connection with a money laundering probe linked to the Delhi excise policy scam case, agency sources told PTI.
BRS leader and former Telangana minister Vemula Prashanth Reddy claimed that Kavitha, the daughter of former Telangana Chief Minister K Chandrasekhar Rao, was arrested and being taken to Delhi on a flight at 8.45 pm.
The ED conducted raid at the residence of the BRS leader earlier in the day. She was questioned thrice in this case last year and the central agency recorded her statement under the Prevention of Money Laundering Act (PMLA).
The Central Bureau of Investigation (CBI) has also previously questioned Kavitha in this case. The Enforcement Directorate had filed a case of money laundering taking cognisance of the FIR filed by the CBI.
Why Kavitha has been arrested?
The arrest order stated that the agency has reasons to believe that "Smt Kalvakuntla Kavita...has been guilty of an offence punishable under the provisions of Prevention of Money Laundering Act, 2002 (15 of 2003)".
The Enforcement Directorate had claimed that Kavitha was linked to a "South Group" lobby of liquor traders who were trying to play a larger role under the now-scrapped Delhi excise policy for 2021-22. The ED had earlier said that the South Group gave kickbacks of ₹100 crore to Aam Aadmi Party (AAP) leaders.
"South Group comprises Telangana MLC Kavitha, Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, and others. The South Group was being represented by Pillai, Abhishek Boinpalli and Butchi Babu," the ED's investigation revealed as per ANI.
"Pillai has been an accomplice and was involved in kickbacks from the South Group and the recoupment of the same from the businesses in Delhi," the ED investigation revealed.
The Enforcement Directorate also alleged that one of the accused in the case, Vijay Nair, received kickbacks to the tune of at least ₹100 crore from the "South Group" (allegedly controlled by Sarath Reddy, Kavitha and Magunta Srinivasulu Reddy) on behalf of leaders of the Aam Aadmi Party (AAP), news agency PTI reported.
Delhi Excise Policy case
The ED and the CBI alleged that irregularities were committed while modifying the Excise Policy . It said undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority's approval.
Notably, the, accused, Pillai was reportedly a partner of 32.5 percent in Indo Spirits, which had got an L1 licence. Indo Spirits is a partnership firm of Arun, Prem Rahul and Indospirit Distribution Limited.
According to ANI, Arun and Prem Rahul represented the benami investments of Kavitha and Magunta Srinivasulu Reddy and his son Raghava Magunta.
ALSO READ: What is the Delhi excise policy ‘scam’?
It was further alleged that the beneficiaries diverted "illegal" gains to the accused officials and made false entries in their books of account to evade detection.
As per the allegations, the Excise Department had decided to refund the Earnest Money Deposit of about ₹30 crore to a successful tenderer against the set rules.
Even though there was no enabling provision, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19.
This allegedly caused a loss of ₹144.36 crore to the exchequer, which has been instituted on a reference from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.
(With inputs from agencies)
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Business NewsNewsIndiaBRS MLC K Kavitha arrested in Delhi liquor policy case: What are charges against her?
First Published:15 Mar 2024, 07:05 PM IST
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