Delhi excise policy: ED quizzes Kavitha, summons her again
Kavitha was confronted with the statements of Butchibabu Gorantla, her former auditor, and Arun Ramachandra Pillai, who represented her interests in the so-called ‘South Group’
The Enforcement Directorate (ED) on Monday questioned Bharat Rashtra Samiti (BRS) leader K Kavitha for the second time in connection with a money laundering probe into the alleged irregularities in the framing and implementation of the now-scrapped Delhi excise policy 2021-22.
Kavitha arrived at ED headquarters in Delhi around 11.30am and was questioned for almost eight hours. She left the building at 8.50pm. She was earlier questioned by the agency on March 11. Officials said that Kavitha,who was first questioned by the agency on March 11, has been summoned again on Tuesday.
People familiar with the matter said she was confronted with the statements of Butchibabu Gorantla, her former auditor, and Arun Ramachandra Pillai, who represented her interests in the so-called “South Group” that allegedly got licences in Delhi in connivance with Aam Aadmi Party (AAP) leaders.
According to Butchibabu statement on February 23, he told ED that “there was a political understanding between Kavitha and the chief minister of Delhi (Arvind Kejriwal) and (former) deputy CM (Manish Sisodia) of Delhi. In that process, Kavitha also met (AAP’s communications in-charge) Vijay Nair on March 19-20, 2021.”
“Vijay Nair was trying to impress Kavitha with what he could do in the policy. Vijay Nair was acting on behalf of the Arvind Kejriwal and Manish Sisodia. The understanding was that in exchange of the favours that can be done in the policy and in the Delhi liquor business for Kavitha, some funds would be given to the AAP,” Butchibabu said in his statement.
He also claimed that as part of the alleged deal between Kavitha and top AAP leaders, she was given stakes in partnership with Sameer (Mahendru) and distribution of Pernod Ricard.
ED has alleged that Pillai played a key role in the kickbacks paid to the AAP by South Group and represented Kavitha’s benami investments.
“We wanted to question her about her role in the South Group, her investments, kickbacks and her meetings with AAP leaders,” said an officer, who didn’t want to be named.
The South Group allegedly comprises YSR Congress MP Magunta Srinivasulu Reddy, his son Raghav Magunta, Sarath Reddy (promoter of Aurobindo Group), Kavitha (daughter of Telangana chief minister K Chandrasekhar Rao) and Delhi-based businessman Sameer Mahendru. It was represented by Abhishek Boinpally, Arun Pillai and Butchibabu in meetings with Vijay Nair and other liquor businessmen.
Kavitha was supposed to appear before ED sleuths last Thursday. However, she sent her authorised representative to the investigating officer with a six-page petition, saying she was skipping the summons as they explicitly do not require her to appear in person. She also questioned the fairness of its investigation.
In her six-page note, she said she had “reasons to believe and a grave apprehension that the inquiry/investigation being carried out may not have the sanctity of law and my expectation of a free, fair, or impartial enquiry or investigation has been severely impaired”.
She also asked that the proceedings be deferred till the Supreme Court decides on her plea seeking protection on March 24. The ED had then rejected her request and summoned her on March 20.