The Enforcement Directorate (ED) has arrested Bharat Rashtra Samithi (BRS) MLC K Kavitha in Hyderabad after a day-long questioning adopted by a raid at her Hyderabad residence. K Kavitha was arrested in reference to the Delhi excise policy-linked cash laundering case. K Kavitha was dropped at the workplace of the Directorate of Enforcement (ED) within the nationwide capital on Saturday. The motion comes virtually two months after the ED issued a summons to the 45-year-old BRS MLC. K Kavitha was questioned thrice on this case final 12 months and the central company recorded her assertion underneath the Prevention of Money Laundering Act (PMLA).
Link Between Kavitha And Delhi Scam
The CBI had earlier questioned Kavitha in reference to the cash laundering case. The ED case was filed after taking cognisance of the CBI’s FIR. According to ED, Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested final 12 months within the case, is without doubt one of the key individuals in the complete rip-off. The rip-off includes funds of giant kickbacks and the formation of the most important cartel by the South Group. (With ANI inputs)
According to studies, South Group includes Telangana MLC Kavitha, Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, and others. The South Group was being represented by Pillai, Abhishek Boinpalli and Butchi Babu, the ED stated. It is alleged that the South Group gave Rs 100 crore to Aam Aadmi Party (AAP) and Pillai labored as a consultant of K Kavithaa and performed an important position on this deal. ED has already questioned Pillai a number of occasions.Â
What ED Said About K Kavitha
On K Kavitha’s arrest, the ED investigation officer stated, “I believe that Smt. Kalvakuntla Kavitha w/o Mr. D R Anil Kumar, residing at H. No. 8-2316/S/H, Road No 14, Banjara Hills, Hyderabad, Telengana-500034 has been guilty of an offence punishable under the provision of Prevention of Money Laundering Act, 2002 (15 of 2003)….Now, therefore, in exercise of the power conferred upon me under sub-section (1) of section 19 of the Prevention of Money Laundering Act, 2002 (915 of 2003), I hereby arrest the said Smt. Kalvakuntla Kavitha at 05.20 pm on 15.03.2024 and she has been informed of grounds for arrest. A copy of the grounds of arrest (containing 14 pages) have been served upon her,” the officer added.
Pillai is learnt to be 32.5 per cent accomplice in Indo Spirits, which had received an L1 licence. Indo Spirits is a partnership agency of Arun (32.5 per cent), Prem Rahul (32.5 per cent) and Indospirit Distribution Limited (35 per cent), whereby Arun and Prem Rahul represented “the benami investments of Kavitha and Magunta Srinivasulu Reddy and his son Raghava Magunta.
Allegations Of Undue Favour
The ED and the CBI had alleged that irregularities have been dedicated whereas modifying the Excise Policy, undue favours have been prolonged to licence holders, the licence charge was waived or diminished and the L-1 licence was prolonged with out the competent authority’s approval. The beneficiaries diverted “illegal” good points to the accused officers and made false entries of their books of account to evade detection, the probe companies stated. As per the allegations, the Excise Department had determined to refund the Earnest Money Deposit of about Rs 30 crore to a profitable tenderer in opposition to the set guidelines. Even although there was no enabling provision, a waiver on tendered licence charges was allowed from December 28, 2021, to January 27, 2022, as a result of COVID-19, the probe company stated and there was the alleged lack of Rs 144.36 crore to the exchequer.Â
