Bharat Rashtra Samithi (BRS) MLC K Kavitha was arrested by the Central Bureau of Investigation (CBI) on Thursday, April 11, in the Delhi liquor policy case. The daughter of former Telangana Chief Minister K Chandrashekar Rao (KCR), Kavitha was arrested by the Enforcement Directorate for money laundering in connection with the excise policy case less than a month ago on March 15.
A week after Kavitha’s incarceration, Delhi Chief Minister and Aam Aadmi Party (AAP) president Arvind Kejriwal was also arrested in connection with the Delhi excise case on March 21. Kavitha’s CBI arrest comes two days after the probe agency informed a Delhi court that it had questioned her in the Tihar Jail.
The Rouse Avenue court hearing the matter had allowed the CBI to quiz Kavitha in jail on April 5. The agency made the submission in response to an application filed by advocate Nitesh Rana, appearing for Kavitha, against the CBI's plea seeking to interrogate her in judicial custody. The CBI then informed the court that it interrogated Kavitha on April 6 following the court's order.
Kavitha, Kejriwal and several leaders of the opposition including those from the AAP and BRS have alleged that the arrest is a political ploy by the Bharatiya Janata Party (BJP) led Union government. Following Kavitha’s arrest, BRS leaders alleged that the arrests were made to weaken the opposition in light of the Lok Sabha polls slotted for May-June 2024.
The ED is probing the Delhi liquor policy scam allegedly committed by the Aam Aadmi Party (AAP),and a group of individuals from the Telugu states including Kavitha whom the ED refers to as the ‘South Group’. It is alleged that the Delhi government's excise policy, which was in place during 2021-22 to grant licences to liquor traders, allowed for cartelisation and privileged certain dealers over others. The preferred dealers had allegedly paid bribes worth Rs 100 crore for the licences, through Kavitha and others. The liquor policy was scrapped amid allegations of irregulariteis and a CBI probe commenced, following which the ED registered a case against the same accused under the Prevention of Money Laundering Act (PMLA).
In its investigation, the ED had alleged that the people involved gave kickbacks of Rs 100 crore to Aam Aadmi Party (AAP) leaders, which were allegedly used by the party during the 2022 Goa Assembly elections. The amount was paid to gain control over the liquor business in Delhi, the ED alleged.