Excise policy case: Delhi court seeks CBI reply on BRS legislator K Kavitha’s bail plea

“Cognizance of the case has already been taken. We are aware that a policy was made and the influence of ‘South Group’ was there. All key persons in the group worked under Kavitha’s command,” said Special Public Prosecutor D P Singh, appearing for the central probe agency.

Kavitha, a member of the Telangana legislative council — who has been under the scanner of the CBI and Enforcement Directorate (ED) for almost two years — was arrested by the ED from Hyderabad on March 15. In April, she was arrested by the CBI as well.

In its remand application against Kavitha, the agencies had earlier alleged that she met Telugu Desam Party (TDP) MP Magunta Srinivasulu Reddy in March 2021, and told him that Delhi Chief Minister Arvind Kejriwal had spoken to her and demanded Rs 100 crore (for setting up a liquor business in Delhi); she had allegedly also asked Reddy to arrange Rs 50 crore.

In two prosecution complaints (equivalent to chargesheets), the ED had claimed that members of the so-called ‘South Group’ that Kavitha was associated with paid bribes to exploit the loopholes in the excise policy that would secure their uninhibited access to various wholesale businesses and retail zones in violation of rules.

Reading out Reddy’s statements before the Rouse Avenue Court, D P Singh stated that the MP had met the Delhi Chief Minister on March 16, 2021, and had later also met Kavitha to discuss opening a liquor business in Delhi.

“Raghava Magunta (Reddy’s son) also confirmed this (in his statements),” D P Singh added.

The agency had also relied on Reddy’s statements to make a case against Kejriwal, who is in judicial custody in both the corruption and the money laundering cases linked to the excise policy “scam”.

“I will give a list of statements I’m relying upon… there are many people who will ultimately speak against Kavitha,” Singh added.

Kavitha is currently in judicial custody till July 18 in the CBI’s case.