HYDERABAD: The Enforcement Directorate on Friday arrested BRS leader K Kavitha after an hours-long raid at her premises in Hyderabad and brought her to Delhi for questioning in a money laundering case linked to the now-scrapped Delhi excise policy, agency sources said.
The BRS leader entered the agency's office in the national capital around midnight, sources said.
Her husband D R Anil Kumar was informed about her arrest and her preliminary statement was recorded under the Prevention of Money Laundering Act (PMLA) during the search that began at 1:45 pm, ED officials said.
She is expected to be produced before a designated PMLA court on Saturday where the agency will seek her remand for custodial interrogation.
ED officials carried out searches at her Hyderabad residence for more than three hours and later took her into custody.
Tension prevailed at Kavitha's residence as a large number of BRS activists gathered there trying to obstruct the ED officials who came to arrest her. However, the ED officials booked a flight ticket for Kavitha and will shift her to Delhi tonight.
BRS leader and former Telangana minister Vemula Prashanth Reddy claimed that Kavitha was taken to Delhi on a flight at 8.45 pm.
He alleged that the move was "pre-planned" and that they would protest against it.
BRS working president K T Rama Rao, former minister Harish Rao, and a large number of party workers gathered at Kavitha's residence and raised slogans.
Kavitha's lawyer, P Mohith Rao, talking to TNIE, said, "The arrest of her client is illegal, unwarranted, and unconstitutional."
"We are closely monitoring the situation. If the need arises, then we can take legal recourse against her arrest," Rao said.
Rao, in a letter, a copy accessed by this newspaper, further said that the petition challenging the proceedings relating to the 2022 case and issuance of summons to Kavitha was pending adjudication before the Supreme Court and was slated to come up for hearing on March 19, Tuesday.
He also said that the matter was listed on September 16, last year, when the top court
was about to pass an order granting a specific order of protection/ restraint. S.V. Raju, the Additional Solicitor General (ASG), for the ED, had made a statement to the Apex court that no such action would be taken.
The statement was sought to be retracted and taken back today, when the matter has been fixed for final hearing and disposal on March 19. The Supreme Court did not acknowledge the same and the matter has been posted to March 19. In wake of the above, the ED would be restrained from even summoning Kavitha or taking any coercive action, the letter of Rao said.
The Enforcement Directorate had claimed that Kavitha was linked to a "South Group" lobby of liquor traders who were trying to play a larger role under the now scrapped Delhi excise policy for 2021-22.
The Enforcement Directorate has alleged that one of the accused in the case, Vijay Nair, received kickbacks to the tune of at least Rs 100 crore from the "South Group" (allegedly controlled by Sarath Reddy, Kavitha and Magunta Srinivasulu Reddy) on behalf of leaders of the AAP.
Police personnel removed her supporters from blocking the vehicle carrying her even as she waved to them.
According to a video shared by BRS, Kavitha's brother, and the party's working president KT Rama Rao was seen arguing with the ED officials saying the agency has violated an undertaking given to the Supreme Court.
"You are in serious trouble," he was seen telling the officials in the video, which went viral.
In the video he also alleged that the family members were not allowed to enter the house even after the searches were concluded.
"Search is over and an arrest warrant is produced and now she (ED official) says you can't come in. Family cannot come in and she also says they have no transit warrant and cannot produce before a magistrate, but she wants to make a case," he said.
Reacting to her arrest, Union Minister for Tourism G Kishan Reddy told reporters that ED raids are part of inquiry into the case.
"She was also avoiding questioning by the ED by showing some reasons. If she's not guilty and not involved in the liquor case, Kavitha needs to appear before the ED or CBI to prove her innocence," Reddy said.
Recently, the Central Bureau of Investigation (CBI) issued a notice to Kavitha to appear before it for questioning. However, she avoided it. Kavitha also avoided the ED's summons some time back.
Though Kavitha was not named as an accused in the charge-sheet in the liquor scam, the ED and CBI grilled her under the Prevention of Money Laundering Act.
Interestingly, Kavitha's arrest took place minutes before Prime Minister Narendra Modi's roadshow in Malkajgiri Lok Sabha segment in Hyderabad.
"Wherever (Prime Minister Narendra) Modi goes, ED and IT (Income Tax) either precede or succeed. That is what is happening in Telangana. They want to create a panic situation in the BRS. The ED and IT, which are working at the behest of the BJP, are not bothered about the Congress leaders of Telangana who have illegally obtained so much wealth," BRS leader Sravan told PTI.
Sravan sought to know why the BJP is "tight-lipped" on the cases against Telangana Chief Minister Revanth Reddy.
"We believe in Satyameva Jayate. Let the truth prevail. We are not saying that IT and ED should not do their jobs, but selectiveness is vindictiveness. Just before the elections, they are trying to do this mudslinging to dent the image of the BRS," he added.
(With inputs Suchitra Kalyan Mohanty, from PTI)