ED summons BRS leader Kavitha for questioning in Delhi Excise Policy case

The Enforcement Directorate has served notice to Bharat Rashtra Samithi (BRS) MLC, K Kavitha in Delhi excise policy scam, directing her to appear it for questioning on Thursday. Kavitha is the daughter of Telangana Chief Minister K. Chandrasekhar Rao.

The ED notice came a day after the agency arrested Hyderabad-based businessman Arun Ramchandra Pillai, allegedly the frontman for Kavitha.

Earlier, the Central Bureau of Investigation (CBI) questioned Kavitha in the same case in December last year. The BRS leader denied allegations and termed as politically motivated.

In the remand report filed in a Delhi court against Arun Pillai, the ED stated that he is one of the key persons of the entire scam.

According to the agency, South Group comprises Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, K Kavitha (MLC, Telangana) and others. The South Group was being represented by Arun Pillai, Abhishek Boinpalli and Butchi Babu.

Arun, along with his associates, Abhishek Boinpalli, Butchi Babu on behalf of the South Group, orchestrated the whole scheme of forming a cartel of the manufacturers, wholesalers and retail which controlled more than 30 per cent of the whole liquor business in Delhi, it said.

According to the remand report, Arun Pillai was involved in forming a cartel of manufacturers, wholesalers and multiple retail zones. He is a partner in Indo Spirits. In this partnership firm Arun Pillai represented the interests of K Kavitha.

Arun and another person have revealed the same in their statements. Arun on paper invested Rs 3.40 crore in Indo Spirits. As revealed in the investigation, out of this amount, Rs 1 crore was given to on the instructions of Kavitha.

Him The ED had earlier said that the South Group gave kickbacks of Rs 100 crore to AAP leaders.

According to the remand report, Arun Pillai is a partner of 32.5 per cent in Indo Spirits, which got an L1 license. Indo Spirits is a partnership firm of Arun (32.5 per cent), Prem Rahul (32.5 per cent) and Indospirit Distribution Limited (35 per cent), wherein Arun and Prem Rahul represented the benami investments of K Kavitha and Magunta Srinivasulu Reddy and his son Raghava Magunta respectively.

In exchange for kickbacks given by the South Group to Vijay Nair and AAP, Indo Spirit was made the wholesaler of Pernod Ricard which made it one of the most profitable L1. Thus, the fund of Rs 3.40 crore which used to show investment in Indo Spirit (a special purpose vehicle to recoup the kickbacks paid by the South Group and channel the illegal gains) is proceeds of crime, the ED added.