New Delhi: BRS leader K Kavitha, allegedly a key member of the 'South Group', which has been accused of paying the ruling AAP kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital, was on Saturday remanded in ED custody till March 23 in a money laundering case linked to the Delhi excise policy "scam".
Kavitha, a member of the Telangana Legislative Council and daughter of former state chief minister K Chandrashekar Rao, was produced before Special Judge for ED cases M K Nagpal, who sent her to the custody of the federal anti-money laundering agency for a week. The ED had sought her custody for 10 days.
Kavitha, 46, was arrested from her Banjara Hills residence on Friday amid protests by Bharat Rashtra Samithi (BRS) supporters. While sending her to ED custody, the judge said the need for her custodial interrogation was felt to be there as it has been observed that the investigation has come to a halt because of her alleged non-cooperation.
"The involvement of the accused in the commission of the alleged offence of money laundering and the crucial role played by her are duly reflected from records and the case file produced by IO before this court and the need for her custodial interrogation is also felt to be there as it has been observed that investigation has come to a halt because of non-joining thereof by the accused or her alleged non-cooperation therein and she is required to be interrogated to trace out the trail of a major portion of the proceeds of crime," the judge said.
On the accused's arguments that ED violated the Supreme Court's directions, the judge said that "effecting arrest of the accused amounts to contempt of any order or not is a question which has to be decided by the Supreme Court itself and not by this court."
"Keeping in view the nature of allegations levelled against the accused and the role played by her in the commission of the alleged offence, there is a need for remanding her to ED custody for investigation. Hence, the accused is being remanded to the custody of ED till March 23, 2024, for her detailed and sustained interrogation and she shall be produced before this court at noon on that day," the judge said.
The judge further directed that her interrogation shall be conducted at some place having CCTV coverage in accordance with the guidelines laid down by the Supreme Court, and to preserve that footage.
The ED has alleged that Kavitha was a part of the South lobby which paid a bribe of Rs. 100 crore in cash to the politicians or public servants representing the ruling AAP in Delhi, in order to tweak the above excise policy, and she was alleged to have been involved in criminal conspiracy right from its inception.
Her remand came on a day Delhi Chief Minister Arvind Kejriwal appeared before a metropolitan court in connection with two complaints filed by the Enforcement Directorate against him for skipping summons in the money laundering case linked to the alleged excise policy scam.
Kejriwal, who skipped eight ED summonses before turning up at the court, was granted bail. His senior party colleagues-Manish Sisodia and Sanjay Singh-are in jail for their alleged involvement in formulating and implementing the excise policy 2020-21 which drastically raised the profit margins of liquor wholesalers and retailers. The ED has claimed Delhi's ruling dispensation extended them the favour in return for money.
While being produced before the judge, Kavitha termed her arrest as illegal and asserted, "We will fight it out in court." During the hearing, senior advocate Vikram Chaudhari, appearing for Kavitha along with advocate Nitesh Rana, told the judge her arrest was "illegal".
The counsel also accused the federal anti-money laundering agency of flouting the Supreme Court direction while arresting her. They claimed the apex court had directed the ED to not take any coercive action against Kavitha before it hears her plea against the summons issued by the agency to her on March 19. "It is a black day that SC orders are violated, that an officer thinks he/she is above law," the counsel told the court.
The ED, however, said it has not made any statement before a court, including the Supreme Court, that no coercive action will be taken against Kavitha. "There is enough evidence, witnesses' statements against K Kavitha in the case," the ED said. The agency also accused Kavitha of destructing evidence in the case. "We have summoned several witnesses to confront K Kavitha with," the agency told the court.
Though Kavitha has not been named as an accused in any charge sheet filed by the ED, the agency has claimed she was a key figure of the 'South Group' who made benami investments in beneficiary liquor companies.
