The Central Bureau of Investigation (CBI) has summoned K. Kavitha, the daughter of former Telangana Chief Minister K. Chandrashekar Rao and Bharat Rashtra Samithi leader, for questioning in the Delhi excise policy case.
Ms. Kavitha has been asked to appear before the probe team on February 26, said an official. The Enforcement Directorate, which is conducting money laundering investigation based on the CBI case, had earlier summoned her multiple times. Dismissing the charges, she had described the move as a political vendetta.
Also read: Kejriwal skips sixth ED summons in excise policy case, says replying to notices as per law
The CBI had registered the case on August 17, 2022, alleging several irregularities in the excise policy (2021-22), which was earlier scrapped by the Delhi government following the corruption allegations.
It was alleged that undue favours were extended to licence holders; licence fee was waived or reduced; and L-1 licence was extended without the approval of the competent authority. The beneficiaries diverted “illegal” gains to the accused officials and made bogus entries in their books of accounts to evade detection.
As alleged by the CBI, the Excise Department had decided to refund the Earnest Money Deposit of about ₹30 crore to a successful tenderer in violation of the rules. Although there was no enabling provision, a waiver on the tendered licence fee was permitted due to COVID-19 from December 28, 2021, to January 27, 2022. This allegedly caused a loss of ₹144.36 crore to the exchequer, the FIR said.
During the investigation, the agencies found that the policy had been modified to extend a high profit margin of 12% to wholesalers and about 185% profit margin to retailers.
The ED has alleged that the then Aam Aadmi Party communication and media in-charge Vijay Nair, on behalf of the party leaders, received about ₹100 crore in advance from the ‘South Group’ whose prominent entities were Ms. Kavitha, YSRCP MP Magunta Srinivasulu Reddy, and his son Raghav Magunta, and Aurobindo Pharma director, P. Sarath Chandra Reddy.
According to the ED, Hyderabad-based liquor businessman and co-accused Arun Ramchandra Pillai represented the interests of Ms. Kavitha. He along with another businessman accused, Abhishek Boinpally, and chartered accountant Butchibabu Gorantla was a front for the “South Group”.
Mr. Pillai was allegedly a 32.5% partner in Indo Spirits, which had got a wholesale liquor licence. It was a partnership firm involving Mr. Pillai, one Prem Rahul (32.5%) and Indospirit Distribution Limited (35%), where he and Mr. Rahul allegedly represented the ‘benami’ investments of Ms. Kavitha, and the YSRCP MP and his son, respectively.
In April 2023, the CBI had recorded the statement of Delhi Chief Minister Arvind Kejriwal. He has been summoned by the ED six times in the recent weeks, but he is yet to join the ED probe.
Two senior AAP leaders, Manish Sisodia and Sanjay Singh, are currently in judicial custody in the same matter. Mr. Sisodia, the then Delhi Deputy Chief Minister, was arrested by the CBI in February 2023 and the ED arrested Mr. Singh, a Rajya Sabha member, in October last year.
