A day after Hyderabad-based businessman Arun Ramchandra Pillai's arrest, BRS MLC K kavitha has been summoned by the Enforcement Directorate in connection to Delhi Liquor Policy Scam. Kavitha will be questioned by the ED on March 10, stated TV reports.
K Kavitha was questioned by CBI--which is also probing the case--in December, 2022. The ED is probing the money laundering aspect of the excise policy scam case. Kavitha was named as an accused based on testimony from another accused in the case.
K Kavitha's alleged former CA arrested
Butuchibabu Gorantla, the alleged former chartered accountant of Kavitha--who is also daughter of Telangana Chief Minister Kalvakuntla Chandrashekhar Rao--was arrested by the CBI for his alleged involvement in the case.
Gorantla was accused of causing wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners through his role in the formulation and implementation of Delhi Excise Policy.
Kavitha reportedly had 65% stakes in Indo Spirits
Kavitha's name came up in the case after three accused in the case Sameer Mahandur, owner of Indo Spirits, Dinesh Arora, and Arun Pillai named the BRS MLC in their statements.
The Telangana leader allegedly had an indirect stake in Indo Spirits, a Delhi-based liquor wholesaler, whose owner is also an accused in the case. Kavitha and other members of the 'South Group' allegedly had a 65% stake in Indo Spirits. The wholesaler had later received the business of Pernord Picard, the biggest liquor manufacturer in the country, allegedly facilitated by businessman Vijay Nair.
The ED charge sheet in the case also stated that the 'South Group' had control over nine retailer zones in Delhi, thereby having control over Delhi's 30% liquor market. The CBI and Enforcement Directorate are investigating the excise scam, and Kavitha has been alleged to be part of the south liquor cartel.
What is "South Group"?
Reportedly, Aam Aadmi Party was given Rs 100 crore by a group titled South Group which was allegedly controlled by Kavitha and Aurobindo Pharma director Sarath Reddy, and Andhra Pradesh's YSR Congress Party leader Srinivasulu Reddy were part of the same.
The group has been accused of cartelising the excise policy and implementation of the same, stated reports.
What is Delhi Excise scam?
The new excise policy had reportedly allowed each wholesaler to reap at least 12% and each retailer 185% in profits. The policy also mandated that each manufacturer should be in business with just one wholesaler at a time.
The policy came under the scanner of investigative agencies after Delhi Lieutenant Governor (LG) recommended a CBI probe into the alleged irregularities related to its implementation. The LG also suspended 11 excise officials.
