In what could further mount trouble for former Telangana Chief Minister K. Chandrashekar Rao's family, the Enforcement Directorate on March 23 alleged that a nephew of BRS leader K. Kavitha was "involved" in the transfer of illicit funds or the proceeds of crime in the Delhi Excise policy-linked money laundering case.
The central agency informed the special Prevention of Money Laundering Act (PMLA) court of Judge Kaweri Baweja in Delhi that it conducted searches at the premises of the said relative, Meka Sri Saran, on March 23 after his role in this case came to the fore during the questioning of Ms. Kavitha over the last week.
Ms. Kavitha, the 46-year-old MLC daughter of former Telangana Chief Minister K. Chandrashekhar Rao, was arrested by the ED on March 15 and she was produced before the court for extension of her custody on March 23. The court sent her to agency's custody till March 26.
The politician told reporters during her production in court that “this was a fraud and wrong case...we are fighting. Arresting these many political leaders during elections is a wrong thing and the Election Commission should intervene and protect democracy in the country.”
"The people should also think why are so many politicians being arrested during elections," she said while taking through a security ring of ED and Delhi Police personnel.
The ED has alleged that Ms. Kavitha was a key member of the 'South Group' that has been accused of paying the Aam Aadmi Party (AAP) alleged kickbacks of ₹100 crore in return for a big share of liquor licences in the national capital, as part of the Excise policy for 2021-22 which has was scrapped following allegations of corruption and cartelisation of liquor traders.
The agency told the court in its remand extension papers for Ms. Kavitha that it seized a mobile device of Mr. Saran during searches at the Bharat Rashtra Samithi (BRS) leader's house at Banjara Hills in Hyderabad on March 15.
It informed the court that Mr. Saran was called twice for questioning but he "failed" to appear.
It was found during the investigation in the last 7 days that Mr. Saran was "involved in transfer/utilisation of proceeds of crime from Indo Spirits (which was created in conspiracy between Kavitha, Magunta Srinivasulu Reddy (YSRCP MP), his son Raghav Magunta and liquor businessman and Indo Spirits promoter Sameer Mahandru)."
"Since, he (Saran) is in possession of information relevant for investigation in the case and he is not cooperating with the investigation, search is being conducted at his premises under section 17 of PMLA on 23.03.2024," the ED said.
It also requested the court to allow its application for further interrogation of Sameer Mahandru for getting details of the said transfer/utilisation of the proceeds of crime by Saran and to ascertain the role of arrestee (Kavitha).
Mahandru was arrested by the ED in this case earlier.
The ED said it was "important to note" that Mr. Saran is a "close relative" of Ms. Kavitha and was also present at her premises that ED raided on March 15.
It added that when Ms. Kavitha was questioned about the business and profession of her nephew, she said "she was not aware" about it.
The agency has earlier said Ms. Kavitha was "one of the kingpin, a key conspirator and beneficiary of the Delhi Excise policy scam".
It is expected that the ED will soon confront her with Delhi Chief Minister Arvind Kejriwal, former deputy CM and AAP leader Manish Sisodia and some others.
Mr. Kejriwal was arrested by the agency two days back and he is in ED custody currently.
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“K Kavitha orchestrated a deal with CM, Delhi Govt Sh Arvind Kejriwal, then deputy CM and minister of excise Manish Sisodia, wherein she along with other members of the South Group paid them kickbacks through a strong of intermidiaries and middlemen.”
"In exchange of the kickbacks paid to the leaders of AAP she had access to the policy formulation and was offered provisions to ensure favourable position to her," the ED claimed.
It further alleged Ms. Kavitha was "involved" in various activities relating to proceeds of crime to the tune of atleast ₹292.8 crore.
Ms. Kavitha, the ED alleged, was giving "evasive" replies during her custodial interrogation and confrontation with other accused and those involved in the case.
The case pertains to alleged corruption and money laundering in formulating and executing the Delhi government's Excise policy for 2021-22, which was later scrapped.
AAP leaders Manish Sisodia and Sanjay Singh were arrested by the ED earlier and they are in judicial custody currently.
