Excise policy case: Kavitha grilled by ED for 9 hrs, summoned again on March 16

The federal anti-money laundering probe agency on Saturday asked her questions related to her alleged meeting with AAP’s communication in-charge Vijay Nair, who met liquor businessmen and politicians at the time of policy formulation and implementation of the policy

The Enforcement Directorate (ED) on Saturday questioned Bharat Rashtra Samithi (BRS) leader K Kavitha for nine hours in its ongoing probe into the alleged money laundering in Delhi excise policy-related irregularities, officials said.

Bharat Rashtra Samithi (BRS) leader K Kavitha (ANI Photo)

She has again been summed by the prob agency on March 16.

Kavitha’s interrogation, which began at 11 am and ended at 8 pm, at the ED headquarters in Delhi, focused on her role in influencing the now-scrapped excise policy and paying kickbacks to Aam Aadmi Party (AAP) leaders, officials familiar with the probe said.

The federal anti-money laundering probe agency on Saturday asked her questions related to her alleged meeting with AAP’s communication in-charge Vijay Nair, who met liquor businessmen and politicians at the time of policy formulation and implementation of the policy, her association with Sameer Mahendru’s Indospirits Group to control multiple retail zones in Delhi, and advance payment of kickbacks worth ₹100 crore allegedly paid to the AAP leaders by a South Group of which Kavitha was a member.

Mahendru and Nair are both accused in the excise policy case that is being investigated by the ED and the Central Bureau of Investigation (CBI).

The ED has alleged that a part of a ₹100 crore “kickback” received by Nair from a “South Group” on behalf of the AAP leaders was used for the Goa assembly elections campaign.

She was also confronted with the statements of Butchibabu Gorantla, her former chartered accountant (CA) and Arun Ramchandra Pillai, who represented her interests during multiple meetings with Nair and others. While Butchibabu was arrested by the CBI on February 7, Pillai was arrested by ED this Monday.

It is, however, not known if she was confronted with former Delhi deputy chief minister Manish Sisodia as well, who is in ED custody till March 17 after he was arrested under the Prevention of Money Laundering Act (MPLA) earlier this week.

The ED has already recorded Butchibabu’s statement, following which Kavitha was summoned for questioning. In his statement recorded before the ED officials on February 23, Butchibabu stated “There was a political understanding between K Kavitha and the chief minister of Delhi (Arvind Kejriwal) and (former) deputy CM (Manish Sisodia). In that process, K Kavitha also met Vijay Nair on 19th-20th March 2021.”

“Nair was trying to impress Kavitha with what he could do in the policy. He was acting on behalf of Kejriwal and Sisodia. The understanding was that in exchange for the favours that can be done in the policy and the Delhi liquor business for Kavitha, some funds would be given to the AAP,” the statement added, reviewed by HT.

“Out of the deal that was between Kavitha and top AAP leaders, she was given stakes in partnership with Mahendru and distribution of Pernod Ricard,” ED said in its remand note on Friday citing Butchibabu’s statement, while seeking Sisodia’s custody.

Pillai, according to investigators, represented the Benami investments of Kavitha. He was allegedly actively involved in cartel formation and was an accomplice in the payment of bribe money on behalf of the South Group.

The South Group comprises YSR Congress MP Magunta Srinivasulu Reddy, his son Raghav Magunta, Sarath Reddy (promoter of Aurobindo Group), and K Kavitha (daughter of Telangana chief minister K Chandrasekhar Rao) and Delhi-based businessman Sameer Mahendru.

On Friday, Telangana chief minister and BRS president K Chandrasekhar Rao accused the Centre of using central probe agencies to target their leaders and raised concerns that his daughter and lawmaker K Kavitha might soon be arrested by the ED.

Kavitha herself has said that she had done nothing wrong while alleging that the centre was using the ED as the saffron party could not gain a backdoor entry in Telangana.

“These tactics of intimidation against the fight of my father and chief minister K Chandrashekar Rao, and the BRS will not deter us,” she said earlier this week.

She was originally supposed to appear before the ED on March 9 but she had sought to defer the questioning, which was shifted to Saturday. On Saturday, she arrived at the ED office straight from his father’s official residence on Tughlak Road.

A second officer cited above said - “She needs to be questioned further about various aspects in the case so she has been called again on March 16”.