The Central Bureau of Investigation (CBI) sought custodial interrogation of Bharat Rashtra Samithi (BRS) leader K Kavitha on Friday, citing unsatisfactory answers regarding alleged kickbacks to the Aam Aadmi Party (AAP) in the Delhi excise policy case.
Kavitha, already in judicial custody in an ED case, was arrested by the CBI. The CBI stated that her arrest was necessary for custodial interrogation to confront her with evidence and witnesses and unravel the larger conspiracy surrounding the formulation and implementation of the Excise Policy.
According to the CBI, a company under the Aurbindo Group made a total payment of Rs 14 crore in July 2021, with Rs 7 crore each paid in the first week of July and mid-November. Kavitha allegedly demanded Rs 25 crores in November-December 2021, claiming she had paid Rs 100 crores upfront to AAP for favorable provisions in the Excise Policy.
When Sarath Chandra Reddy hesitated to pay the demanded amount, Kavitha reportedly threatened to harm his business in Telangana and Delhi under the Excise Policy.
The CBI further claimed that Kavitha’s associate, Arun R Pillai, advised against paying outstanding dues to Indospirits after the withdrawal of the Delhi Excise Policy, suggesting redirection of funds to Kavitha.
On Wednesday, the CBI informed the court that Kavitha had been examined on April 6 in Tihar Jail. The court granted the CBI’s request to examine Kavitha during judicial custody, seeking permission to interrogate her regarding WhatsApp chats and a land deal allegedly involving kickbacks to AAP.
The Rouse Avenue Court extended Kavitha’s judicial custody until April 23. She was arrested by the ED on March 15 in connection with the Delhi excise policy-linked money laundering case.
The ED alleged that Kavitha conspired with top AAP leaders to influence the Delhi Excise policy in exchange for Rs 100 crore, generating illegal kickbacks for AAP. Assets worth Rs 128.79 crore, derived from proceeds of crime, have been attached.
The CBI inquiry stemmed from the Delhi Chief Secretary’s report, which highlighted prima facie violations in the formulation and implementation of the Excise Policy, including undue favors and financial irregularities.
Both the ED and the CBI alleged that license holders benefited from policy modifications, causing losses to the exchequer and diverting illegal gains to accused officials. The probe agencies accused beneficiaries of making false entries in their accounts to evade detection.