A Delhi court on Monday extended the judicial custody of Bharat Rashtra Samithi (BRS) leader K Kavitha till July 3 in connection with a money laundering case related to an alleged excise policy scam. Last month, the Enforcement Directorate (ED) filed a nearly 200-page prosecution complaint along with annexures under the provisions of the Prevention of Money Laundering Act (PMLA). The federal agency had arrested 46-year-old Kavitha, the daughter of former Telangana chief minister K Chandrashekar Rao, from her Banjara Hills residence in Hyderabad on March 15.
Charged against K Kavitha
The ED has alleged that Kavitha was a key member of the 'South Group' that has been accused of paying the Aam Aadmi Party (AAP) alleged kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital, as part of the now-scrapped Delhi excise policy for 2021-22. The agency earlier said Kavitha was "one of the kingpins, a key conspirator and beneficiary of the Delhi excise policy scam". The excise case pertains to alleged corruption and money laundering in the formulation and execution of the Delhi government's excise policy for 2021-22.
On May 29, the Rouse Avenue Court took cognizance of the Enforcement Directorate's supplementary prosecution complaint (chargesheet) filed against Kavitha and others in connection with the case. The chargesheet was filed against Kavitha and other accused namely Chanpreet Singh, Damodar, Prince Singh and Arvind Kumar.
What did ED and CBI claim?
The ED and the CBI had alleged that irregularities were committed while modifying the excise policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority's approval. The beneficiaries diverted "illegal" gains to the accused officials and made false entries in their books of account to evade detection, the probe agencies said. As per the allegations, the Excise Department had decided to refund the earnest money deposit of about Rs 30 crore to a successful tenderer against the set rules.
Delhi excise policy scam case
The matter relates to alleged corruption and money laundering in the formulation and execution of the Delhi government's now-scrapped excise policy for 2021-22. It is alleged that the Delhi government's excise policy for 2021-22 to grant licences to liquor traders allowed cartelisation and favoured certain dealers who had allegedly paid bribes for it, a charge repeatedly refuted by the AAP. The policy was subsequently scrapped and Delhi Lt Governor VK Saxena recommended a Central Bureau of Investigation probe, following which the ED registered a case under the Prevention of Money Laundering Act (PMLA).
(With inputs from agencies)
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