Rouse Avenue Court of Delhi Refused to grant interim bail to K. Kavitha, leader of BRS, in connection with the Delhi Excise policy-related money laundering case. Special Judge Kaveri Baweja rejected the plea, stating that the current stage was not appropriate for granting interim bail.
Kavitha had sought interim bail from the court, citing her 16-year-old son’s exams and the need for his mother’s “moral and emotional support.”
However, the Enforcement Directorate (ED) opposed the plea, alleging that Kavitha had tampered with evidence and influenced witnesses in the case.
The agency accused Kavitha of being a pivotal member of the “South Group,” which purportedly paid kickbacks of ₹100 crore to the ruling AAP in Delhi in exchange for a significant portion of liquor licenses in the capital.
Kavitha, aged 46, was apprehended from her residence in Banjara Hills on March 15 amidst protests by BRS supporters. Subsequently, she was remanded to seven-day ED custody, which was later extended by three days. Following this, she was placed in 14-day judicial custody starting from the previous Tuesday.
The South Group and link with Kejriwal and Kavitha
As per Enforcement Directorate (ED), a group known as the ‘South Group,’ identified as a liquor cartel, included prominent figures such as Telangana MLC Kavitha, Sarath Reddy of the Aurobindo Group, YSRCP MP Magunta Srinivasulu Reddy from Ongole, his son Raghav Magunta, and others.
Investigations by the ED unveiled that the ‘South Group’ was represented by individuals like Arun Ramachandra Pillai, Abhishek Boinpalli, and Butchi Babu, who acted as intermediaries and facilitators for the group’s activities.
Significant Member of the ‘South Group
Kavitha’s alleged involvement found as a significant member of the ‘South Group’. The ED said that she facilitated payments amounting to ₹100 crore to the Aam Aadmi Party (AAP) in Delhi, purportedly in exchange for favorable treatment, particularly a considerable share of liquor licenses in Delhi, during the 2021-22 excise policy, which has since been revoked.
ED, reports says her alleged role in making undisclosed investments in liquor companies on behalf of the ‘South Group.’ The investigation also pointed to Arun Pillai, a Hyderabad businessman, who was purportedly instrumental in coordinating political agreements between the ‘South Group’ and a leader of the AAP.
The probe further revealed that Arun Pillai had a significant stake in Indo Spirits, a partnership firm where investments were allegedly made on behalf of Kavitha and Magunta Srinivasulu Reddy and his son, Raghava Magunta, according to the ED.
Conspiring with Top AAP Leaders
Kavitha faced allegations of conspiring with top AAP leaders to influence the formulation and execution of the Delhi excise policy in exchange for benefits. The ED accused her of gaining stakes in Indo Spirits through a proxy, contributing to the firm’s profitability under the 2021-22 Excise policy, allegedly facilitating the laundering of proceeds from illicit activities.
Kavitha Orchestrated Deal with Arvind Kejriwal
The agency also claimed that Kavitha orchestrated a deal with Delhi CM Arvind Kejriwal and then-Deputy Chief Minister Manish Sisodia, where kickbacks were allegedly routed through intermediaries, including Vijay Nair, the AAP’s communication in-charge, who was subsequently arrested by ED and CBI. Finally K. Kavitha got arrested by ED on March 15 from Hyderabad.