ED questions Kavitha over ties with co-accused
Officials aware of the matter said Kavitha was questioned for over nine hours, from 11 am to 8 pm, at the ED headquarters in Delhi and the grilling concerned her alleged role in influencing the now-scrapped policy.
The Enforcement Directorate (ED) on Saturday questioned K Kavitha, Bharat Rashtra Samithi (BRS) leader and the daughter of Telangana chief minister K Chandrasekhar Rao, in connection with a money laundering investigation that is connected to alleged irregularities in Delhi’s 2021-22 excise policy.
Officials aware of the matter said Kavitha was questioned for over nine hours, from 11 am to 8 pm, at the ED headquarters in Delhi and the grilling concerned her alleged role in influencing the now-scrapped policy, which the federal agencies and the Union government-appointed lieutenant governor said was a way for Delhi’s Aam Aadmi Party to receive corrupt money.
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After questioning, Kavitha was allowed to leave but has been asked to join investigation on March 16 as well, they 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 the policy being formulated, her association with Sameer Mahendru’s Indospirits Group, which allegedly received preferential treatment and controlled multiple retail zones in Delhi, and the alleged advance payment of kickbacks worth ₹100 crore to AAP leaders by a collective that includes her. The agency has called this collective the South Group.
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).
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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.
AAP leaders have denied the allegations and have said there has been no money trail uncovered by any of the agencies, and the allegations are a political conspiracy by the rival Bharatiya Janata Party (BJP).
Kavitha was also confronted with the statements of Butchibabu Gorantla, her former chartered accountant (CA) and Arun Ramchandra Pillai, who allegedly represented her interests during multiple meetings with Nair and others, the people aware of the matter added.
While Butchibabu was arrested by the CBI on February 7, Pillai was arrested by ED on Monday.
It was, however, not known if Kavitha was confronted with former Delhi deputy chief minister Manish Sisodia, 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 recorded Butchibabu’s statement, following which Kavitha was summoned. In his statement recorded before the ED officials on February 23, he stated that “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 in 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.
The South Group comprises YSR Congress MP Magunta Srinivasulu Reddy, his son Raghav Magunta, Sarath Reddy (promoter of Aurobindo Group), and Kavitha and Delhi-based businessman Sameer Mahendru.
Kavitha was first supposed to appear before the ED on March 9 but had sought to defer the questioning, which was shifted to Saturday. 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”.