Delhi Liquor Policy Case: There seems to be no end to the troubles for Telangana chief minister K. Chandrashekar Rao's family, which is under fire for its alleged involvement in the Delhi liquor policy case. The Enforcement Directorate on Saturday alleged that a nephew of BRS leader K Kavitha was "involved" in the transfer of illicit funds or the proceeds of crime in the Delhi excise policy-linked money laundering case.


The central probe agency informed the special Prevention of Money Laundering Act (PMLA) court of Judge Kaweri Baweja in the national capital that it carried out searches at the premises of the said relative, Meka Sri Saran, on Saturday after his role in this case came to light during the questioning of Kavitha over the last week.


Kavitha, the 46-year-old MLC daughter of former Telangana chief minister K Chandrashekhar Rao, was arrested by the ED on March 15 and she was produced before the court for extension of her custody on Saturday. The court sent her to probe agency's custody till March 26.


Speaking to the reporters, during her production in court, the BRS MLC said, "this was a fraud and wrong case...we are fighting. Arresting these many political leaders during elections is a wrong thing and the Election Commission should intervene and protect democracy in the country," as quoted by PTI. 


While being taken through a security ring of the probe agency and Delhi Police personnel, Kavitha said, "The people should also think why are so many politicians being arrested during elections". 


The probe agency has levelled allegations on Kavitha and claimed that she was a key member of the 'South Group' that has been accused of paying the Aam Aadmi Party (AAP) alleged kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital, as part of the now scrapped excise policy for 2021-22.


According to PTI, the federal agency told the court in its remand extension papers for Kavitha that it seized a mobile device of Saran during searches at the Bharat Rashtra Samithi (BRS) leader's house at Banjara Hills in Hyderabad on March 15. It informed the court that Saran was called twice for questioning but he "failed" to appear.


According to the ED, It was found during the investigation in the last 7 days that Saran was "involved in transfer/utilisation of proceeds of crime from Indo Spirits (which was created in conspiracy between Kavitha, Magunta Srinivasulu Reddy (YSRCP MP), his son Raghav Magunta and liquor businessman and Indo Spirits promoter Sameer Mahandru)."


"Since, he (Saran) is in possession of information relevant for investigation in the case and he is not cooperating with the investigation, search is being conducted at his premises under section 17 of PMLA on 23.03.2024," the probe agency said, as quoted by PTI. It also requested the court to allow its application for further interrogation of Sameer Mahandru for getting details of the said transfer/utilisation of the proceeds of crime by Saran and to ascertain the role of arrestee (Kavitha). Mahandru was arrested by the ED in this case earlier. The ED said it was "important to note" that Saran is a "close relative" of Kavitha and was also present at her premises that ED raided on March 15.


It further stated that when Kavitha was questioned about the business and profession of her nephew, she said "she was not aware" about it. The agency has earlier said Kavitha was "one of the kingpin, a key conspirator and beneficiary of the Delhi excise policy scam".


ED Likely To Bring Kavitha, Kejriwal, Sisodia Face To Face Soon


The ED is likely to confront Kavitha soon with Arvind Kejriwal, former deputy CM and AAP leader Manish Sisodia, and some others, as reported by PTI. The Delhi CM was arrested by the agency two days ago, and he is in ED custody currently.


"K Kavitha orchestrated a deal with CM, Delhi Govt Sh Arvind Kejriwal, then deputy CM and minister of excise Manish Sisodia, wherein she along with other members of the South Group paid them kickbacks through a strong of intermidiaries and middlemen." "In exchange of the kickbacks paid to the leaders of AAP she had access to the policy formulation and was offered provisions to ensure favourable position to her," the ED claimed, as quoted by PTI. It further alleged Kavitha was "involved" in various activities relating to proceeds of crime to the tune of atleast Rs 292.8 crore.


As per the ED allegations, Kavitha was giving "evasive" replies during her custodial interrogation and confrontation with other accused and those involved in the case.


The case pertains to alleged corruption and money laundering in formulating and executing the Delhi government's excise policy for 2021-22, which was later scrapped. AAP leaders Manish Sisodia and Sanjay Singh were arrested by the ED earlier and they are in judicial custody currently.