The Central Bureau of Investigation (CBI) on April 11 arrested Bharat Rashtra Samithi legislator K. Kavitha in connection with the Delhi excise policy case.
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Ms. Kavitha was lodged in Tihar Jail under judicial custody after the Enforcement Directorate (ED) arrested her in Hyderabad on money-laundering charge on March 15. On April 10, the CBI got approval from a special court to arrest her.
It has been alleged that Ms. Kavitha was part of a “South Group’ which paid ₹100 crore in advance as “kickbacks” through the then Aam Aadmi Party (AAP) communication and media in-charge Vijay Nair, who represented some AAP leaders.
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According to the probe agencies, she and other members of the group had conspired with the top AAP leaders, including Delhi Chief Minister Arvind Kejriwal and the then Deputy Chief Minister Manish Sisodia, for getting favours in the formulation and implementation of the excise policy.
The CBI had registered the case on August 17, 2022, against Mr. Sisodia and 14 others on a reference from the Union Home Ministry. It was alleged that the excise policy was tweaked to extend undue favours to licence holders; licence fee was waived or reduced; and L-1 (wholesaler) licence was extended without the competent authority’s clearance.
The policy extended an extraordinarily high profit margin of 12% for wholesalers and almost 185% profit margin for retailers.
In lieu of the alleged ₹100-crore “kickbacks”, the “South Group” partners were given 65% stakes in Indo Spirits company for the recovery of payments. These stakes were controlled through “false representation, concealment of true ownership and proxies”, as alleged.