What are charges against BRS MLC Kavitha? What is Delhi liquor scam case?

HYDERABAD: The Enforcement Directorate on Friday arrested Bharat Rashtra Samithi MLC Kalvakuntla Kavitha in the Delhi liquor policy case, even as the Supreme Court deferred hearing of her petition in questioning by the ED to March 19. That too, a day before the Election Commission of India is going to announce the schedule for General Elections 2024.

What is the Delhi liquor policy scam case?

The Delhi State Government of Aam Admi Party led by Arvind Kejriwal introduced a new excise policy in November 2021 permitting private sector to apply for liquor licence to sell alcohol in Delhi. This was a departure from its earlier policy of the liquor outlets being run by the State Government.

Also, the new policy permitted the liquor stores to be kept open even after midnight and also offering huge discounts on liquor. Obviously, this spurred the sale in most of the private liquor shops resulting in Delhi State Government posting a surge of 27 per cent in excise revenue.

However, the two central agencies – the CBI and the ED – alleged that the changes in liquor policy pointed to irregularities in its very formulation. The two probing agencies observed that “undue favours” were extended to the private licence-holders like waiving off of the prescribed licence fee or discounted and also the L-1 licence was accorded without the sanction of the competent authority.

Broadly, this is all about the new liquor policy.

What are the charges against Kavitha ?

The main allegation is that she connived with the AAP Government and its Deputy Chief Minister Manish Sisodia on behalf of the south lobby – frequently called the “South Group” -- in making the Delhi Excise policy.

The BRS MLC is charged with having benami investments in the tainted company ‘Indospirits’. The Enforcement Directorate (ED) alleged that Rs 100 crore of kickbacks changed hands in the scam. The principal allegation is that the roots of the money trail could be traced to Hyderabad and it was transferred from there to Delhi.

One of the alleged associates of Kavitha, Arun Ramchandran Pillai, a businessman in Hyderabad, who had denied the charges later turned approver in the case. Her auditor, Gorantla Butchi Babu, who also turned approver in the case, gave a confession statements that led the needle of suspicion towards Kavitha. The ED is reportedly banking on his confession statements and whatsapp conversations.

Also Read: Delhi liquor policy probe: ED serves fresh notice to Kavitha, Arun Ramachandra Pillai turns approver

The South Group, purportedly controlled by Kavitha, Sarath Chandra Reddy of multi-billion dollar pharma and real estate conglomerate Aurobindo group; and Ongole MP Magunta Srinivasulu Reddy (recently resigned from YSRCP), and his son Raghava, who all turned approvers one after the other, allegedly bribed the AAP government to have the excise policy drafted with conditions that would favour them in securing the bid. This eventually would facilitate a cartelisation among them and control the retail liquor outlets.

The ED charged Kavitha with investing through her proxies and later returned their money from the company upon securing the licences.

Also Read: Kavitha terms ED notice as 'Modi notice', says it is politically motivated

Kavitha had appeared before the ED for questioning for two consecutive days once for more than nine hours on each occasion. She sported her mobile phones, which were alleged to have been destroyed by her.

Also read: Delhi liquor scam case: ED begins sifting data from Kavitha’s mobile phones 

In a bid to counter the charges of the ED, Kavitha flashed her mobile phones in a bag before appearing at the ED authorities.

Also read: Won't summon BRS MLC Kavitha for questioning until next hearing: ED promises Apex Court

She later challenged the ED summoning her for questioning in the Supreme Court. The matter came up before the apex court even on Friday and the same was posted for March 19. Though ED promised the court that it would not take any coercive action against her, the agency arrested her.