Delhi High Court Denies Bail to BRS Leader K Kavitha in Liquor Policy Scam Cases

On Monday, the Delhi High Court refused to grant bail to BRS leader K Kavitha in the money laundering and corruption cases linked to the alleged liquor policy scam.

Justice Swarana Kanta Sharma turned down Kavitha’s requests for bail in the cases filed by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

Kavitha is currently in judicial custody for both the CBI and ED cases.

The court noted that K Kavitha appeared to be a key conspirator in the criminal plot related to the creation and execution of the Delhi Excise Policy 2021-22.

The court further stated that she seemed to be involved in paying kickbacks, setting up M/s Indo Spirit to recover those kickbacks, and participating in various other activities related to the proceeds of the crime.

“To conclude, the twin conditions under Section 45 of PMLA are not fulfilled in the present case, so as to entitle the applicant to grant of bail in case registered by Directorate of Enforcement,” the court said.

The court also mentioned that Kavitha did not meet the triple test required for bail.

While acknowledging that Kavitha is highly educated and has made significant contributions to politics and social work, the court emphasized that it could not ignore the serious allegations made by the prosecution and the evidence gathered during the investigation.

“Thus, Smt. K. Kavitha cannot be equated to a vulnerable woman who may have been misused to commit an offence, which is the class of women for whom the proviso to Section 45 of PMLA has been incorporated, as held by the Hon‟ble Apex Court in case of Saumya Chaurasia (supra). Accordingly, this Court is of the considered opinion that Smt. K. Kavitha is not entitled to the benefit of proviso to Section 45 of PMLA,” the court said.

In addition to challenging the entire proceedings leading to her arrest in the corruption case, Kavitha has also filed a separate petition against the trial court’s order allowing the CBI to interrogate her while she was in judicial custody for the ED case. She argued that the order was issued without giving her any notice or a chance to respond.

Kavitha also contested the trial court’s decision to permit the CBI to arrest her and the orders that placed her in police and judicial custody.

The trial court had denied Kavitha bail in both the money laundering and corruption cases filed by the CBI on May 6.

Kavitha was arrested by the ED on the evening of March 15. She was in judicial custody when the CBI arrested her after obtaining court permission to interrogate her in jail.

AAP leaders Manish Sisodia and Sanjay Singh are also accused in the ED case. While Sisodia remains in jail, Singh was recently granted bail by the Supreme Court following a concession by the ED.

The ED claims that the excise policy was part of a conspiracy to grant a 12 percent profit margin to certain private companies, even though this was not mentioned in the minutes of the Group of Ministers (GoM) meetings.

The agency alleged that Kavitha, along with other members of the South Group, including Sarath Reddy, Raghav Magunta, and Magunta Srinivasulu Reddy, conspired with top Aam Aadmi Party leaders and paid them kickbacks amounting to Rs. 100 Crore in exchange for undue favors in the formulation and implementation of the excise policy.

The ED also claimed that Kavitha orchestrated a deal with the Delhi Chief Minister and then Deputy Chief Minister, where she and other South Group members paid kickbacks through intermediaries and middlemen.

On the other hand, the CBI alleged that Sarath Reddy entered the liquor business in Delhi under the excise policy based on Kavitha’s assurance that she had contacts in the Delhi Government and would assist him in the business.

The CBI further alleged that in November-December 2021, Kavitha asked Sarath Chandra Reddy to pay Rs. 25 crores at the rate of Rs. 5 crores per zone for the five retail zones allotted to him, claiming that she had paid Rs. 100 crores upfront to the Aam Aadmi Party through Vijay Nair for favorable provisions in the Excise Policy.

The CBI also stated that Kavitha needed to be examined in connection with evidence that emerged during the further investigation of the case regarding her involvement in the criminal conspiracy related to the formulation and implementation of the Excise Policy.

Title: K Kavitha v. CBI, ED

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