In the money laundering case pertaining to the purported Delhi excise policy fraud, a Delhi court has given the Central Bureau of Investigation (CBI) permission to question and record the remarks made by K Kavitha, the leader of Bharat Rashtra Samithi (BRS), who is incarcerated at the moment. The probe agency’s application, in which it requested permission from the court to question the BRS head, was the basis for the order.
Background
On March 15th, Kavitha, daughter of former Telangana chief minister K Chandrasekhar Rao, was arrested by the Enforcement Directorate (ED) in connection with the excise policy case. She is currently detained in Tihar Jail. Kavitha was the third high-profile politician apprehended in the case, following the arrests of AAP leaders Manish Sisodia and Sanjay Singh. Notably, on March 21st, Delhi Chief Minister Arvind Kejriwal became the first sitting chief minister to be arrested in connection with the case.
The ED alleges that Kavitha was part of a group called the “South Group” which allegedly paid bribes totalling ₹100 crore to AAP leaders in exchange for nine retail zones under the now-scrapped excise policy. The agency further identified other alleged members of the “South Group” as Yuvajana Sramika Rythu Congress Party (YSSRCP) MP Magunta Srinivasulu Reddy and his son Raghav Magunta, Aurobindo Group promoter Sarath Reddy, and Delhi-based businessman Sameer Mahendru.
Legal Proceedings
Kavitha was initially detained by the central agency until March 23rd. Her custody was subsequently extended, and last week, she was remanded to judicial custody for 14 days. On Thursday, Delhi’s Rouse Avenue Court deferred its decision on her request for interim bail until April 9th. Kavitha had petitioned for interim bail due to her son’s upcoming exam.
Overview of Delhi Excise Policy
The Delhi government introduced an excise policy in 2021-22 with the aim of rejuvenating the city’s struggling liquor industry. The policy sought to replace the previous sales-volume-based regime with a license fee for traders. Additionally, it promised upgraded liquor stores, devoid of the notorious metal grilles, in order to enhance the overall buying experience for customers.
Scrapping of the Policy
However, the excise policy was abruptly scrapped following Delhi Lieutenant Governor VK Saxena’s request for a CBI probe into alleged irregularities associated with the policy.