ED Arrests KCR's Daughter K Kavitha From Hyderabad Residence In Delhi Liquor Case

Delhi: The Enforcement Directorate (ED) has arrested Bharat Rashtra Samithi (BRS) MLC, K Kavitha, in Hyderabad on Friday around 5:30 pm. Earlier, today, the ED carried out searches at residence K Kavitha, in Hyderabad. Authorities are transporting her to Delhi for interrogation. The raid was part of an investigation into a suspected case of money laundering related to the Delhi excise policy. This move follows nearly two months after the ED summoned K Kavitha, the 45-year-old daughter of former Telangana Chief Minister and BRS leader K Chandrashekhar Rao, for questioning.

Speaking to media in Hyderabad, Vemula Prashanth Reddy Kavitha, a leader of the Bharat Rashtra Samithi (BRS) and former Telangana minister, mentioned that Kavitha was scheduled to depart for Delhi on an 8:45 pm flight. He asserted that this action was premeditated and declared their intention to stage a protest it. The working president of BRS, K T Rama Rao, along with former minister Harish Rao and a sizable group of party supporters, congregated at Kavitha's residence, chanting slogans. The ED had alleged that Kavitha had ties to a lobby of liquor traders known as the "South Group," who were attempting to exert influence under the now-defunct Delhi excise policy for 2021-22.

She underwent three rounds of interrogation regarding this matter last year, during which the central agency documented her statement under the Prevention of Money Laundering Act (PMLA). Kavitha has previously stated that she is innocent and has accused the BJP-led Central government of manipulating the Enforcement Directorate (ED), suggesting that the saffron party is attempting to gain influence in Telangana through indirect means. Additionally, the Central Bureau of Investigation (CBI) has also interrogated Kavitha in relation to this case. The ED initiated a money laundering investigation based on the FIR filed by the CBI. 

During its investigation, the ED stated that it discovered Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested last year in connection with the case, played a significant role in the entire scheme. This scheme involved substantial kickbacks and the establishment of the largest cartel in the South Group. The South Group includes figures such as Telangana MLC Kavitha, Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, and others. Pillai, along with Abhishek Boinpalli and Butchi Babu, represented the South Group, as per the findings of the federal agency's investigation. 

The Enforcement Directorate (ED) has submitted its inaugural chargesheet in the matter. The agency disclosed that it has conducted close to 200 search operations thus far, subsequent to initiating an FIR upon receiving a recommendation from the Delhi Lieutenant Governor following a CBI case. The CBI investigation was prompted by a report from the Delhi Chief Secretary in July, which highlighted apparent breaches of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010, as per officials. 

The Enforcement Directorate (ED) has filed its initial chargesheet in a case. They've conducted around 200 search operations related to this case after starting an investigation following a suggestion from the Delhi Lieutenant Governor. According to the accusations, the Excise Department decided to give back about Rs 30 crore to a winning bidder, breaking the rules. Even though there was no proper provision for it, they waived off the license fees from December 28, 2021, to January 27, 2022, due to COVID-19. This allegedly led to a loss of Rs 144.36 crore to the government, which is being looked into based on a referral from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.