Telangana Former CM KCR’s Daughter and BRS MLC K Kavitha Arrested in Delhi Liquor Policy Case

On 15th March 2024 (Friday), the Enforcement Directorate (ED) arrested Telangana’s former chief minister K Chandrashekar Rao’s daughter and Bharat Rastra Samithi MLC K Kavitha in connection with the Delhi Excise policy scam case. 

Enforcement Directorate’s Operation

ED officers from Delhi arrived in Hyderabad on Friday and conducted searches in Kavitha’s house and later executed the arrest. ED Hyderabad officials assisted the Delhi team in executing the arrest.

Parallel Investigations By ED and CBI

While the Central Bureau of Investigation (CBI) is focusing on the case under the Indian Penal Code (IPC) and the Prevention of Corruption Act, ED is doing a parallel probe under money laundering in connection with the Delhi Liquor Policy case.

Kavitha’s Arrest

According to the arrest memo, Kavitha was arrested by the central probe agency at 5:20 pm from her residence at Banjara Hills in Hyderabad. Moreover, the ED officials informed her husband D R Anil Kumar about the arrest.

According to India Today, the BRS leader was being brought to Delhi for questioning in the Delhi liquor policy case.

The ED had claimed 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.

Timing of Arrest

Kavitha’s arrest comes just a day before the scheduled announcement of the Lok Sabha election schedule, so it has the potential to become an election issue in the state. The primary allegation against Kavitha is her alleged involvement in the South Lobby, conspiring with ministers from the Aam Aadmi Party (AAP) government and others to develop the controversial Delhi excise policy. Moreover, Kavitha is accused of holding benami investments in the company Indospirit. The ED has alleged that kickbacks worth Rs 100 crore were exchanged in the scam, with money being transferred from Hyderabad to Delhi.

Ruckus After Arrest

ED officials claimed at around 6 pm, a group of men barged into the residence and obstructed ED’s work. They claimed to be Kavitha’s brother, lawyers, and other relatives but showed no identity cards. Moreover, Kavitha’s brother KT Rama Rao was seen engaged in a fight with the ED officials. 

KT Rama Rao argued with the ED officials, seeking the reason for denying family members from meeting Kavitha. Moreover, he inquired whether ED had a transit remand to fly Kavitha from Hyderabad to New Delhi.

Reacting to her arrest, KT Rama Rao in a post on X said, “Abuse of power and institutional misuse to settle political scores is something that has become increasingly common with BJP government in the last 10 years. ED needs to answer the Supreme Court on the inordinate rush to arrest when the matter is very much sub-judice and up for review in a couple of days, on the 19th of March. What’s even more appalling is the ED undermining its own undertaking given to the Hon’ble Supreme Court. Justice shall prevail and we will continue to fight legally.”

Confessions and Accusation

Hyderabad businessman and alleged frontman of Kavitha, Arun Ramachandran Pillai, initially gave a statement and retracted it later. However, her auditor, Gorantla Buchi Babu, confessed to the agency, told about various meetings with Kavita and WhatsApp chats and implicated her in the case.

The accused allegedly bribed the AAP government to formulate an excise policy to facilitate companies to win bids, form a cartel, and control retail outlets in Delhi. Kavitha purportedly invested money through her benami and returned the money from the company after obtaining licenses, as alleged by the ED.

In a meeting at ITC Kohinoor in Hyderabad in June 2021, Vijay Nair discussed some funds that were to be transferred from Hyderabad to Delhi, and he entrusted that responsibility to Dinesh, asking him to coordinate with Abhishek Boinpally, another associate of Kavita for the same. 

Accused like Magunta Raghava Reddy and Sarat Chandra Reddy turned approver and gave statements against Kavitha.

Kavitha’s Lawyers Set to Knock the Supreme Court

Kavitha’s lawyers will try to seek an urgent hearing before the Supreme Court on Saturday against the arrest. 

According to the lawyers, she could not have been arrested by the central probe agency, considering the Supreme Court’s interim protection given to her in the case.