The Enforcement Directorate (ED) on March 11 questioned Bharat Rashtra Samiti (BRS) MLC K. Kavitha, daughter of Telangana Chief Minister K. Chandrasekhar Rao, for about nine hours in connection with the Delhi Excise policy case.
She has been summoned again on March 16 for recording her statement.
On Friday, Ms. Kavitha had observed a hunger strike, along with leaders of 12 political parties. The Bharatiya Janata Party (BJP) termed it “preposterous” and a ploy to change the narrative on the case.
On Thursday, in the same case, former Deputy Chief Minister Manish Sisodia was arrested by the ED, following his questioning inside Tihar Jail where he was lodged after the expiry of his Central Bureau of Investigation (CBI) remand. He is currently in the ED’s custody.
Hyderabad-based liquor businessman, Arun Ramachandra Pillai, who allegedly represented the interests of Ms. Kavitha, is also in the agency’s custody. He, along with co-accused Abhishek Boinpally and chartered accountant Butchibabu Gorantla, was a front for the “South Group” that was extended favours under the now-scrapped excise policy, the ED has alleged.
Mr. Pillai is a partner with 32.5% stake in Indo Spirits, which had been granted wholesale liquor licence. It is a partnership firm with Mr. Pillai, Prem Rahul (32.5%) and Indospirit Distribution Limited (35%), wherein Mr. Pillai and Mr. Rahul represented the ‘benami’ investments of Ms. Kavitha and YSRCP MP Magunta Srinivasulu Reddy and his son Raghav Magunta, the ED has alleged.
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It has accused Mr. Pillai and others of having orchestrated the plan to form a cartel of manufacturers, wholesalers and retailers to control over 30% of the whole liquor business in Delhi.
The Central Bureau of Investigation (CBI) and the ED have alleged that the policy was modified to extend a high profit margin of 12% to wholesalers and close to 185% profit margin to retailers.
As alleged, the then AAP communication and media in-charge Vijay Nair, on behalf of Aam Aadmi Party leaders, received an advance of ₹100 crore from the “South Group” whose prominent entities were Mr. Reddy, his son, Ms. Kavitha and Aurobindo Pharma director P. Sarath Chandra Reddy. Through “proxies”, the group partners were given 65% stake in the accused Sameer Mahandru’s Indo Spirits for the recovery of advance payments, it is said.
In relation to the case, the ED has so far arrested 12 persons and attached assets worth ₹76.54 crore under the Prevention of Money Laundering Act.
