The Enforcement Directorate (ED) has summoned BRS MLC Kalvakuntla Kavitha for questioning in Delhi in connection with the Excise Policy case on Friday, September 15. The questioning in the case which has been ongoing since last year assumes significance as it comes after four accused turned approvers.
YSR Congress Party (YSRCP) MP Magunta Srinivasulu Reddy, his son Raghava Reddy, former Aurobindo Group Director P Sarath Chandra Reddy and former Delhi Deputy Chief Minister Manish Sisodia’s close aide Dinesh Arora have turned approvers in the case. The ED’s case is that a cartel called the ‘South Group’ was allegedly controlled by Kavitha, Magunta and Sarath Reddy. The cartel represented by Hyderabad-based businessmen Arun Pillai and Abhishek Boinpalli, and Kavitha’s former Chartered Accountant Butchibabu Gorantla paid bribes to AAP for liquor licenses.
In December 2022, Kavitha was asked to appear before the Central Bureau of Investigation (CBI) as a witness. Kavitha was questioned about her alleged links with several of the accused including Sarath Chandra Reddy and owner of Buddy Retail Private Limited Amit Arora.
It is alleged that the Delhi government's excise policy for 2021-22 to grant licences to liquor traders allowed for cartelisation and privileged certain dealers over others. The preferred dealers had allegedly paid bribes worth Rs 100 crore for the licenses. The ruling Aam Aadmi Party (AAP) in Delhi denied the charge.
The liquor policy was scrapped soon after and a CBI probe commenced, following which the ED booked a case against the same accused under the Prevention of Money Laundering Act (PMLA).
In its investigation, the ED had alleged that the people involved gave kickbacks of crores to Aam Aadmi Party (AAP) leaders that were allegedly used by the party during the 2022 Goa Assembly elections. The amount was paid to gain control over the liquor business in Delhi, the ED alleged.
Kavitha’s involvement in the case came about after the ED arrested Hyderabad-based businessman Arun Ramchandran Pillai on March 9, 2023. The ED said that Pillai had confessed to representing Kavitha’s interests in the liquor policy case.
“The allegations made on me by BJP people are completely baseless…KCR has been vocal in criticising the policies of the BJP government. Rattled by these allegations by KCR, BJP is trying to malign the reputation of our family,” Kavitha had said.
The Bharat Rashtra Samithi (BRS) leader was first summoned on March 9 but requested the ED to defer her questioning citing a day-long hunger strike announced on March 10 in the national capital over the delay in passing the Women's Reservation Bill in Parliament. The ED issued fresh summons asking her to appear on March 11 where the interrogation went on for nine hours. On March 20 and 21, Kavitha was questioned for 10 hours each time.