On Monday, the Enforcement Directorate presented new details in the Delhi Excise Policy case, asserting that over ₹1,100 crore had been laundered. In the supplementary prosecution complaint, the federal agency stated that Bharat Rashtra Samithi (BRS) leader K Kavitha was involved in proceeds of crime (PoC) amounting to ₹292.8 crore.

The allegations were made in a supplementary prosecution complaint, the ED’s equivalent to a charge sheet, filed before Special Judge Kaveri Baweja. On Monday, the judge extended K Kavitha's judicial custody until 3 July.

The judge extended the custody following Kavitha's appearance in court as per its earlier order, which had issued a production warrant against her. These warrants were issued after the court took cognisance of a charge sheet against the BRS leader in the case on May 29th.

Additionally, the court granted bail to three co-accused individuals—Prince, Damodar, and Arvind Singh—who had been charged in the case but were not arrested during the ED's investigation.

“As per the investigation so far, the total proceeds of crime identified is ₹1,100 crore, out of which PoC of ₹292.8 crore is being dealt with in this Prosecution Complaint. Through activities of the accused persons i.e. Kavitha, Champreet Singh, Prince Kumar, Damodar Sharma and Arvind Singh, huge proceeds of crime have been generated,” the charge sheet alleged.

The charge sheet claimed that Kavitha was involved in PoC of ₹292.8 crore, out of which kickbacks of ₹100 crore were given to A leaders.

“Kavitha conspired with the members of the South Group and the A leaders through accused Vijay Nair to pay kickbacks to the tune of ₹100 crore and receive undue benefits,” the documents claimed.

According to the charge sheet, Kavitha allegedly participated in generating proceeds of crime (PoC) amounting to ₹100 crore by paying kickbacks to government functionaries through their middleman. It further claimed that she was involved in transferring these proceeds of crime to the said government functionaries.

The ED additionally asserted that Kavitha, through conspiracy and the establishment of IndoSpirits, a company implicated in the case, played a role in generating, acquiring, and utilising proceeds of crime amounting to ₹192.8 crore. These proceeds were allegedly derived from the conspiracy involving kickbacks and their payments.

The ED alleged that by presenting IndoSpirits as a legitimate business entity and acquiring proceeds of crime worth ₹192.8 crore, Kavitha was involved in portraying these proceeds as genuine profits derived from a lawful business.

“By way of participating in the conspiracy of formation of IndoSpirits to recoup advance bribes of ₹100 crore paid, Kavitha is knowingly involved in the generation and transfer of PoC of ₹100 crore and the generation, acquisition, and possession of PoC ₹192.8 crore in the guise of profits generated by IndoSpirits during November 2021 to August 2022,” the ED alleged.

The federal agency stated that Kavitha received proceeds of crime amounting to ₹5.5 crore from IndoSpirits under the guise of her associate and co-accused, Abhishek Boinpally. The report also accused Kavitha of destroying digital evidence in an attempt to conceal her role and involvement in the case.

“Kavitha has deleted evidence and contents of her mobile phone. She presented nine phones for examination, which were formatted and had no data. She was evasive and couldn't give any explanation for those formatted phones,” the ED alleged.

The allegations further claimed that Kavitha was engaged in influencing witnesses. The 46-year-old BRS leader is currently in judicial custody in connection with the two cases filed by the ED and the CBI regarding the alleged scam.

The "scam" revolves around purported corruption and money laundering linked to the development and execution of the Delhi government's excise policy for 2021-22, which was later annulled. Kavitha was apprehended by the ED at her Banjara Hills residence in Hyderabad on March 15. Later, the CBI arrested her from Tihar jail.

Image source: AFP