The Rouse Avenue Court in Delhi has extended the judicial custody of Bharat Rashtra Samithi (BRS) MLC K Kavitha till April 23, 2024, in connection with the excise policy money laundering case. This decision came after the Enforcement Directorate (ED) submitted a plea stating that Kavitha had allegedly attempted to influence witnesses and tamper with evidence, leading to the extension of her custody by 14 days.
Advocate Nitesh Rana, representing K Kavitha, opposed the ED’s plea, arguing that there were no new grounds since her arrest, and the application lacked specific details. Despite this, the court allowed the extension of her judicial custody. K Kavitha was not permitted to address the court orally but was allowed to submit her statements in writing.
On a related note, the same court recently granted permission to the Central Bureau of Investigation (CBI) to question K Kavitha during her judicial custody at Tihar Jail. The CBI sought to interrogate her regarding WhatsApp chats recovered from a phone belonging to Buchi Babu, as well as documents related to a land deal in which 100 crores were allegedly paid to the Aam Aadmi Party (AAP) in kickbacks.
K Kavitha, an MLC in the Telangana Legislative Council, was arrested by the ED on March 15, 2024, in connection with the Delhi Liquor Policy Scam. The ED stated that during a search at K Kavitha’s residence in Hyderabad, their officials were obstructed by her relatives and associates. The investigation revealed that she, along with others, conspired with top AAP leaders including Arvind Kejriwal and Manish Sisodia to gain benefits in the formulation and implementation of the Delhi Excise Policy 2021-22. In return for these benefits, it is alleged that she was involved in paying Rs 100 crores to AAP leaders.
The ED has conducted searches at 245 locations across the country, including Delhi, Hyderabad, Chennai, and Mumbai, in connection with this case. So far, 15 people, including AAP members Manish Sisodia, Sanjay Singh, and Vijay Nair, have been arrested. The agency has filed one Prosecution Complaint and five Supplementary Complaints in the case.
Assets worth Rs 128.79 crores, derived from the proceeds of crime, have been traced and attached through provisional attachment orders. These orders were confirmed by the adjudicating authority in New Delhi. The ED has also filed its first chargesheet in the case and conducted nearly 200 search operations. The CBI inquiry was initiated based on the findings of a report by the Delhi Chief Secretary, which highlighted violations of various rules and regulations related to the excise policy.
Both the ED and the CBI have alleged irregularities in the modification of the Excise Policy, extending undue favours to license holders, and losses to the exchequer. The excise department reportedly refunded earnest money deposits against the rules and waived or reduced license fees without proper approval. These actions allegedly resulted in an estimated loss of Rs 144.36 crores to the exchequer.
