Breaking: BRS MLC Kavitha sent to judicial custody for 14 days

Hyderabad: BRS MLC Kavitha has been sent to 14-day judicial custody in the Delhi Liquor Scam Case by the Rouse Avenue District Court in New Delhi. She will be in the custody till April 9.

She was was taken to Tihar Jail. She has reached Tihar Jail and will be lodged in jail number 6, which is the women's jail. Her medical examination will be conducted," an official said.

On Tuesday, Kavitha was produced in a court on the conclusion of her custody remand in the Delhi excise policy scam case. The federal probe agency was earlier allowed by Special Judge Kaveri Baweja to interrogate Kavitha in custody.

Speaking to reporters before entering court, the BRS leader claimed, "One accused has joined BJP and another is ready to join. One more has paid BJP Rs 50 Cr. This is not a money laundering case but a political laundering case. I will fight it in court and come out,"

Kavitha, the daughter of former Telagana cheif minister KCR has been arrested by the Enforcement Directorate. According to the ED, Kavitha who is the kingpin in the Delhi Liquor Policy Scam, along with other members of the ‘South Group’, bribed AAP leaders with Rs 100 crores and tweaked the policy to create a stream of illegal income.

During the proceedings on Tuesday, Kavitha's advocate Nitesh Rana sought interim bail on the grounds of her minor son's exam. The counsel for the ED countered the bail, saying even if interim bail is to be considered, then opportunity must be given for filing a reply.

The ED underlined that for both interim and regular bail there were stringent provisions under the Prevention of Money Laundering Act (PMLA).

In the custody petition filed by the ED, it is told that Kavitha along with other members of the South Group i.e. Sarath Reddy, Raghav Magunta and Magunta Srinivasulu Reddy, conspired with the top APP (Aam Aadmi Party) leaders and gave them kickbacks to the tune of Rs 100 crores and in exchange got undue favours in the Delhi Excise Policy formulation and implementation.

Kavitha was involved in the transfer of Rs 100 crores through her staff/associates Abhishek Boinpally and Buchi Babu which was paid to the AAP leaders.

The ED said that Kavitha conspired with other people and was actively involved in the payment of kickbacks to the tune of Rs 100 crores and then in establishing the money laundering ecosystem i.e. lndo Spirits through her proxy which generated proceeds of crime of Rs 192.8 crores. By such acts, K Kavitha is involved in various processes and related activities.

What ED said in its remand petition?

1. Kavitha is one of the kingpins, a key conspirator and a beneficiary of the Delhi Excise Policy Scam. She along with other members of the South Group i.e. Sarath Reddy, Raghav Magunta and Magunta Srinivasulu Reddy, conspired with the top APP (Aam Aadmi Party) leaders and gave them kickbacks to the tune of Rs 100 crores and in exchange got undue favours in the Delhi Excise Policy formulation and implementation.

2. Kavitha orchestrated a deal with Delhi chief minister Arvind Kejriwal and then deputy CM and then minister of Excise, Manish Sisodia, wherein she, along with other members of the South Group, paid them kickbacks through a string of intermediaries and middlemen. In exchange for the kickbacks paid to the AAP leaders, she had access to the policy formulation and was offered provisions to ensure a favourable position to her.

3. She also acquired stakes in the partnership of Indo Spirits, through her associate Arun Pillai, without substantial investment in the firm and distribution business of Pernod Ricard India Pvt Ltd, one of the biggest manufacturers in the country. This made Indo Spirits the most profitable LI in the Delhi Excise Policy 2021-22 period and recouped proceeds of crime in the guise of profits.

4. Further, in the policy, the profit margin of the wholesaler was increased to 12 per cent so that out of this margin, a portion could be taken back as kickbacks. This was done to create a continuous stream of illegal funds for the AAP in the form of kickbacks from the wholesalers and for the South Group to recover the kickbacks paid and further generate profits from this entire conspiracy.

5. Kavitha, along with others, paid Rs 100 crores as a bribe to AAP leaders.