Delhi liquorgate: ED to question BRS's Kavitha about 'south cartel'
What's the story
Bharat Rashtra Samithi (BRS) MLC K Kavitha is being questioned by the Enforcement Directorate (ED) on Saturday in connection with the alleged Delhi liquor policy scam case.
Reportedly, the main focus of the ED investigation would be the alleged role of the "southern cartel" comprising middlemen, businessmen, and politicians, including Kavitha, in formulating the now-scrapped controversial policy to help private players linked to it.
Context
Why does this story matter?
Questioning
Kavitha to be questioned in front of accused Arun Pillai
Kavitha will be made to sit face-to-face with Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested in connection with the case on Monday night, reported ANI.
She arrived in New Delhi on Wednesday after the ED issued a summons for her questioning.
Her brother, BRS leader KT Rama Rao, also arrived at the New Delhi residence of their father—Telangana CM K Chandrasekhar Rao—on Friday.
Details
Sisodia accused of favoring 'south group' comprising Kavitha
The inquiry into the Delhi liquor policy is centered on the "south group," an alleged network of intermediaries, businessmen, and politicians.
The ED alleged that the policy was changed by Sisodia to favor private companies of the "south group" without consulting anyone.
CM KCR's daughter Kavitha is allegedly one of the "southern cartel" members under the investigative agencies' radar.
Response
BRS leader accuses Centre of using 'tactics of intimidation'
Earlier, Kavitha termed the ED summons as "tactics of intimidation" by the Centre against her party and KCR.
"In India, there's no difference between Enforcement Directorate summons and [PM Narendra Modi's] summons," she told NDTV.
"It's a practice now wherever there's an election, before PM, the Enforcement Directorate comes. What can the opposition do? Go to people's court or the Supreme Court," Kavitha added.
Information
Show of solidarity for Kavitha
In order to show solidarity with her, BRS workers and supporters gathered outside KCR's New Delhi residence on Saturday. Meanwhile, Telangana ministers—such as Sabitha Indra Reddy, Satyavathi Rathod, and V Srinivas Goud—and party MPs like BB Patil and K Keshava Rao earlier visited her residence.
Cartel
Kavitha is part of southern cartel, alleges ED
Kavitha is on the list of south Indian politicians and businesspeople named by the ED.
It stated that a "southern cartel" paid the AAP administration in Delhi Rs. 100 crore in kickbacks to get liquor licenses illegally, which the party then utilized for election campaigning.
On Monday, Pillai was detained on suspicion that he was a cartel representative—the 11th arrest in the case.
Facts
Several arrests made in case from Hyderabad
According to the investigators, the alleged cartel also comprises Telangana Rashtra Samithi (now BRS) founding member Boinpally Hanumantha Rao's son Abhishek Boinpally Rao, Sarath Reddy (Aurobindo Pharma), and Benoy Babu of (Pernod Ricard).
Most arrests were made in Hyderabad—with Pillai being the most recent addition.
Magunta Sreenivasulu Reddy—an MP from Andhra Pradesh's ruling YSR Congress—and his son are also named in the case.
Arrests
Kavitha's former aide and auditor arrested last month
After conducting a raid on Kavitha's former aide and auditor Butchi Babu Gorantla's home in September 2022, the CBI detained him last month for refusing to cooperate with the inquiry.
He reportedly used to provide auditing services to Kavitha and many other well-known people.
Notably, Hyderabad's wholesale and retail licensees and their beneficial owners allegedly profited unfairly from the liquor policy, claimed the CBI.