ED arrests BRS MLC Kavitha in Delhi excise policy case
Agency probing her involvement in ‘South Group’, which allegedly played a key role in liquor policy scam; agency says a Hyderabad businessman, two others were favoured in the policy
In a dramatic development that stretched through the day, the Enforcement Directorate officials arrested Bharat Rashtra Samithi (BRS) Member of the Legislative Council (MLC) Kalvakuntla Kavitha in the alleged Delhi Liquor Policy scam case. She has been arrested under the Prevention of Money Laundering Act.
“In exercise of the power conferred upon me under subsection (1) of Section 19 of the PMLA, 2002 (915 of 2003), I hereby arrest Kalvakuntla Kavitha at 5.20 p.m. and she has been informed of the grounds for arrest. A copy of the grounds for her arrest has been served upon her,” read a release by the ED official.
Earlier, around noon on Friday, three vehicles of ED and Income Tax officials reached the residence of Ms. Kavitha in Banjara
Hills. The officials cordoned off her house, barred her staff from interacting with her, they seized their phones during the time the searches were carried out, according to sources.
The ED is probing the allegation of Ms. Kavitha’s involvement in the ‘South Group’, which played a key role in the Delhi Liquor Policy scam that provided an exceptionally high profit margin both for wholesalers and retailers.
The ED alleged that Hyderabadbased liquor businessman and coaccused Arun Ramchandra Pillai had represented the interests of Ms. Kavitha. He along with another accused, Abhishek Boinpally, and chartered accountant Butchibabu Gorantla fronted for the ‘South Group’ that was favoured under the excise policy.
The ED alleges that Mr. Pillai had a 32.5% stake in Indo Spirits, which had got a wholesale liquor licence.