In a big relief to the BRS leader K Kavitha, the Supreme Court on Tuesday granted her bail in both CBI and ED cases in the alleged Delhi Liquor Policy Scam. The top court allowed Kavitha's release and directed her to furnish two bonds worth Rs 10 lakhs each for both CBI and ED case. The court also directed the BRS leader to deposit her passport. 


The top court observed that investigation is complete and chargesheet has been filed and custody of K Kavitha is not necessary. The bench said that Kavitha has been behind bars for 5 months and the likelihood of trial being concluded in near future is "impossible."




A bench of Justices BR Gavai and KV Viswanathan passed the order after noting that the trial will take a long time to conclude. During the hearing, the top court questioned the fairness of the ED and CBI and criticised their selective approach in treating some accused as approvers. 


Justice Gavai while hearing arguments orally remarked that prosecution has to be fair.


"A person who incriminates himself has been made a witness! Tomorrow you pick up anyone as you please? You cannot pick and choose any accused. What is this fairness?" He remarked while hearing ASG SV Raju's arguments.


The court while granting bail to K Kavitha in its order noted that the investigation is complete and chargesheet has been filed.


"Custody of the appellant is not necessary. She has been behind bars for 5 months. The likelihood of trial being concluded in near future is impossible. As said in various pronouncements of this court, undertrial custody should not turn into a punishment," the Supreme Court observed.


The apex court further said that the BRS leader is entitled to beneficial treatment available to women under Section 45(1) of the Prevention of Money Laundering Act (PMLA). The top court also called the Delhi High Court observations on application of PMLA provision for woman perverse and took a strong exception of the same.


The Delhi High Court had rejected the argument that K Kavitha was entitled to bail under PMLA as a woman and said that an educated, sophisticated woman is not entitled to bail under the beneficiary provision for women under PMLA.


The top court said that if this Delhi High Court order is allowed to become law, this perverse observations would mean no educated woman can get bail.


"It would apply at least to all courts in jurisdiction of Delhi. What is this?! On the contrary we say courts should not differ between MP and common person, but here finding an artificial discretion not there in statute," the Supreme Court bench remarked.


While dictating order, the top court said that the learned single judge of Delhi High Court has totally misdirected herself in applying the said proviso of PMLA.


In June, the Delhi High Court rejected bail petition moved by the BRS leader K Kavitha in the alleged money laundering and corruption cases in connection to the now scrapped Delhi Liquor Policy.


Justice Swarana Kanta Sharma of the Delhi High Court pronounced verdict on Kavitha's pleas seeking bail the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) cases against her.


Before that, a special CBI judge Kaveri Baweja dismissed the BRS leader's bail plea in cases filed by the the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) related to the now scrapped liquor policy.


Kavitha was arrested on March 15. ED called Kavitha one of the prime movers of giving bribes. The central agency claimed that Kavitha is not only responsible for arranging kickbacks in advance but also beneficiary through Indo Spirits. 


On March 26, Kavitha was sent into judicial custody till April 9. She was arrested on March 15 by the ED. Her judicial custody was then extended from time to time.


A former MP and BRS leader Kavitha, who is also the daughter of former Telangana Chief Minister K Chandrasekhar Rao was arrested for being part of the ‘South Group’ that allegedly benefitted from the now scrapped Delhi Excise Policy brought in by the AAP government in Delhi.


The ED claims that the South Group got uninhibited access, undue favours, and secured stakes in established wholesale businesses and multiple retail zones (over and above what was allowed in the policy). The ED has alleged that the now scrapped new excise policy was implemented by the AAP leaders as part of a conspiracy to give wholesale business profit of 12% to certain private companies in alcohol business.