BRS leader K Kavitha in CBI custody until April 15 in Delhi liquor policy case.

Ms Kavitha was previously in judicial custody until April 23 in a money laundering case related to the payment of bribes to Delhi’s ruling Aam Aadmi Party for liquor licences. The CBI sought custody of Ms Kavitha for five days, citing witness statements, WhatsApp chats, and financial documents that allegedly implicated her as a major conspirator.

The central agency stated the need for her custodial interrogation to confront her with evidence and witnesses to unearth a larger conspiracy related to the formulation and implementation of the excise policy. The CBI also mentioned the requirement for Ms Kavitha’s custody to establish the trail of ill-gotten money and to determine the role of other accused individuals in the case, as well as unearth facts within her exclusive knowledge.

The alleged money trail from the bribes has been a significant focus, with authorities thus far unable to track down the cash. The CBI revealed that a liquor businessman met Delhi Chief Minister Arvind Kejriwal to obtain the licences and was instructed to coordinate payments through Ms Kavitha and others, including the AAP’s former communications chief, Vijay Nair.

The CBI and the Enforcement Directorate relied on statements from accused-turn-witnesses like Dinesh Arora to support their case. Ms Kavitha’s lawyers argued that the timing of her arrest, a month before the Lok Sabha election, was suspicious, and claimed that due process had been violated.

They emphasized that the case against their client did not fall under the Prevention of Money Laundering Act (PMLA), making it almost impossible to obtain bail. They also questioned the grounds for seeking custody and deemed it unjustified, illegal, and unconstitutional.

Ms Kavitha, the daughter of ex-Telangana Chief Minister K Chandrasekhar Rao, is alleged to have been part of a group involved in paying bribes to the AAP. These bribes were reportedly generated due to high profit margins for liquor sales allowed by the AAP.

The ED has labeled the Delhi Chief Minister as a “key conspirator” and he has moved the Supreme Court after a plea to declare his arrest void was rejected by the High Court.