Delhi court sends K Kavitha to ED custody till March 23 in excise policy case

New Delhi: A Delhi court on Saturday allowed a plea by the Enforcement Directorate for custodial interrogation of BRS MLC K Kavitha till March 23 for investigation into her role in tweaking the Delhi Liquor policy scam.

Kavitha was apprehended from her residence in Hyderabad on March 15. She faces accusations of being associated with the 'South lobby,' alleged to have paid an illicit gratification of Rs 100 crores in cash to politicians and public servants in Delhi. This purported scheme aimed to manipulate the liquor policy of the Delhi government, with Kavitha purportedly being a significant beneficiary.

Special Judge M K Nagpal observed that the accused's involvement in the alleged offence of money laundering and her significant role are evident from the records and case file presented by the Investigating Officer. The necessity for her custodial interrogation is also apparent, considering that the investigation has stalled due to her non-participation or alleged lack of cooperation.

She is required to be interrogated to trace out the trail of a major portion of the proceeds of crime, the court said.

"Allegations against the accused are that she was a part of the 'South lobby' which paid a bribe of Rs 100 crores in cash to the politicians or public servants representing the ruling AAP in Delhi, in order to tweak the excise policy, and she is alleged to have been involved in criminal conspiracy right from its inception," the court said.

The court also noted statements of various co-accused who have turned approvers, stating that a major portion of the kickbacks, i.e. Rs 25 crores, was contributed only after meetings with this accused, and it was also delivered as per the instructions given by her and her associate.

The court further highlighted that it had previously been established on record that the co-accused Arun Ramchandran Pillai, who was incorporated as a partner in the wholesale entity M/S Indo Spirits, was utilized as a mechanism to guarantee repayment of the aforementioned kickbacks. M/s Indo Spirits is alleged to have garnered significant profits as a wholesale liquor licensee of one of the other co-accused.

"In view the nature of allegations levelled against accused and the role played by her in commission of the alleged offence, there is a need for remanding her to ED custody for the purposes of investigation. Hence, the accused is being remanded to the custody of ED till March 23, 2024 for the purposes of her detailed and sustained interrogation and she shall be produced before this court at 12 pm on that day," the court said.

The court also directed that the interrogation of the accused should be conducted under CCTV surveillance. Additionally, she would be permitted to meet with her lawyers and two or three family members for half an hour daily.

During the hearing, Kavitha's counsel claimed her arrest was illegal in view of the undertaking by the Additional Solicitor General before the Supreme Court, which has posted the matter for hearing on March 19.

The EC counsel, however, contended that there was no specific order or direction given by the Supreme Court restraining the ED officials from interrogating or arresting the accused. He argued that she had rightly been arrested by the ED after complying with all the safeguards.

The ED sought 10 days custodial interrogation of the accused.

The Enforcement Directorate registered the money laundering case on August 22, 2022, in relation to scheduled offences of the CBI, which lodged its case on August 17, 2022, in connection with irregularities committed in framing and implementing the excise policy for the year 2021-22 and payment of bribes.

Former Delhi Deputy Chief Minister Manish Sisodia was among over a dozen accused arrested in the case.