HYDERABAD: The Enforcement Directorate (ED) has accused BRS MLC K Kavitha of being one of the kingpins and key conspirators as well as a beneficiary in the alleged Delhi liquor scam. The ED explained her role in detail in the remand report submitted to the Rouse Avenue Court in New Delhi on Saturday.
“Kavitha along with other members of the South Group — Sarath Chandra Reddy, YSRCP MP Magunta Srinivasalu Reddy, and his son Raghav Magunta — conspired with the top leaders of AAP and gave them kickbacks to the tune of Rs 100 crore and, in exchange, got undue favours in the Delhi Excise Policy formulation and implementation”, the ED said.
It also alleged that Kavitha orchestrated a deal with Delhi Chief Minister Arvind Kejriwal and then Deputy CM and Minister of Excise, Manish Sisodia, where she along with other members of the South Group paid kickbacks through a string of intermediaries and middlemen.
“In exchange for the kickbacks paid to AAP leaders, she was given access to the policy formulation and was offered provisions to ensure a favourable position to her. She further got stakes in the partnership of Indo Spirits, through her dummy Arun Pillai, her close associate, without substantial investment in this firm and distribution business of Peniod Ricard India Pvt Ltd. It is the biggest liquor manufacturer in the country and thus made Indo Spirits, the most profitable L1 [licencee] in the Delhi excise policy 2021-22 period and thus recouped proceeds of crime in the guise of profits”, the remand alleged.
Kavitha allegedly asked Srinivasulu Reddy to arrange Rs 50 crore and, finally on her instructions, her close associate Abhishek Boinpalli and auditor Buchi Babu collected Rs 25 crore from Raghav Magunta.
According to the ED, one of Kavitha’s staff members revealed that he collected two bags containing cash from Dinesh Arora’s office and delivered it to Vinod Chauhan, an associate of Sisodia, who transferred the same for the AAP election campaign in the Goa Assembly elections through the hawala route.
The ED asserted that Kavitha was involved in the transfer of Rs 100 crore through her staff and associates Abhishek and Buchi Babu. The ED document stated: “It is evident that Kavitha conspired with other people and was actively involved in the payment of kickbacks to the tune of Rs 100 crore and then in establishing the money laundering ecosystem — Indo Spirits — through her proxy which generated proceeds of crime (POC) of Rs 192.8 crore. By such acts, Kavitha is involved in various processes and activities relating to POC to the tune of at least Rs 292.8 crore.”
False evidence, destruction of digital evidence alleged
The ED alleged that Kavitha destroyed the digital evidence to conceal her role and involvement in this scam. The ED also alleged that she gave false evidence during the recording of statements. The ED alleged that WhatsApp chats between Buchi Babu and Raghav Magunta clearly show that Kavitha was getting a 33% stake in Indo Spirits. She denied the same even after seeing the WhatsApp chat, it said.
The ED alleged that Kavitha indulged in frivolous litigation to delay the investigation and even in the writ petition filed in the Supreme Court, she made incorrect submissions.
The ED said in its remand report that Kavitha stated that her phones were forcibly impounded wherein on March 21, 2023, she brought nine mobile phones for examination and made quite a political show of it. She had given consent for opening the devices. Despite this Kavitha is making false allegations and disrupting the investigation.
The ED alleged that she was making unnecessary, redundant, and political statements when asked specific questions during the recording of the statements.
The ED alleged that she had deleted evidence and contents from her mobile phone. Even if she used Facetime and WhatsApp from that phone, no data was found in those apps. According to the ED document: “Kavitha, during the recording of her statement dated March 21, 2023, presented nine phones for examination. On preliminary examination, it was found that these phones were formatted and had no data. When enquired about whether she had formatted these devices she said she did not. She stated that these devices were with her staff and she took them back from them to produce them before the ED."
When asked who deleted the data in those devices and on whose instructions, Kavitha was evasive and couldn’t give any explanation. The ED said that at least four of these devices were formatted after the issuance of summons to her on March 11, 2023.