Delhi Liquor scam: Kavitha arrested in Hyderabad

Hyderabad: The Enforcement Directorate (ED) has arrested BRS MLC Kalvakuntla Kavitha in the Delhi liquor policy scam.

On Friday, the ED conducted searches at her residence in Banjara Hills for about four hours.

Surprisingly, the raids and arrest happen on the day when Prime Minister Narendra Modi is in Hyderabad.

BRS working president K T Rama Rao argued with the ED officials, accusing them of violating its undertaking of ‘no-coercive action’ given in Supreme Court and proceeded to arrest his sister Kavitha in the Delhi liquor policy money laundering case.

Kavitha has challenged ED’s summons in Delhi liquor policy case, and the matter is pending in SC for over a year.

#Hyderabad: Arguments between @KTRBRS and ED officials—-

BRS Working President @KTRBRS seeks transit warrant from ED officials present at the residence of MLC @RaoKavitha.

Note, the officials have come on a Friday evening. Legal remedy will only be available on Monday. pic.twitter.com/qIO6jTEPO3

— @Coreena Enet Suares (@CoreenaSuares2) March 15, 2024

A team of 12 officials from Delhi formed into four teams and conducted inspections. Ten officers including two women officers participated in the searches. Along with Kavitha, the ED officials are also investigating her husband’s businesses.

The authorities seized two phones from Kavita and it is reported that her statement was recorded. On the other hand, police were heavily deployed near Kavitha’s residence.

Why is BRS MLA and brother K T Rama Rao arguing with ED?

1. He is asking ED for a transit warrant before they take Kavitha to Delhi

2. He is questioning ED for alleged violations of its undertaking of ‘no-coercive action’ against Kavitha

3. Earlier Kavitha has challenged ED’s summons in Delhi liquor policy case, and the matter is pending in SC.

4. Allegations of Kavitha been found guilty for Money Laundering.

SC provided protection till March 13

In February 2024, Kavitha, who was summoned by the CBI in the Delhi Excise Policy case under a CrPC section meant for ‘suspects’, asked the agency to keep the notice in abeyance, citing upcoming Parliamentary polls.

The Supreme Court on February 28, 2024, extended till March 13 the protection it had granted to Kavitha from any coercive action in a money laundering case lodged by the Enforcement Directorate (ED) in connection with the alleged Delhi excise policy scam.

During her previous questioning, Kavitha was confronted with the statements of Butchibabu Gorantla, her former chartered accountant, and Arun Ramchandra Pillai. While Butchibabu was arrested by the CBI in February, Pillai was arrested by ED in March last year.

However, Kavitha has denied all charges.

Move to SC, says BRS

Addressing the media, BRS MLA Harish Rao said that they will move the Supreme Court (petition) against the arrest of MLC Kavitha. "When ED informed the court that no- coercive action will be taken against Kavitha, why did they arrest her on Friday evening. What was the urgency to arrest her before the election dates are announced? BRS party has withstood all such attacks. The arrest is purely political motivated," said Harish Rao.

The BRS party has called for protest in all constituencies across the state on Saturday.

Multiple parties named in scam

The Delhi Liquor Policy scam nailed three political parties including Aam Aadmi Party, Bharat Rashtra Samithi, and Yuvajana Sramika Rythu Congress Party. Reports are making rounds in the political circles that the three approvers in the case are being pitched against BRS MLC Kavitha Rao, as a favour to the big bosses to help save the skin of an important YSRCP MP who is facing murder charges.

The Enforcement Directorate has alleged that one of the accused in the case, Vijay Nair, received kickbacks of at least Rs 100 crores from a group called South Group (controlled by Sarath Reddy, Kavitha and Magunta Srinivasulu Reddy) on behalf of leaders of the AAP.

In a recent development, the Supreme Court has dismissed the curative petitions filed by AAP leader Manish Sisodia against its October 30 last year verdict dismissing his bail pleas in the corruption and money laundering cases related to the alleged Delhi excise policy scam. Sisodia was arrested by the Central Bureau of Investigation on February 26, 2023, for his alleged role in the scam.