Kavitha’s nephew involved in transfer, use of proceeds from Delhi liquor 'scam': ED

PTI

New Delhi, March 23

In what could further mount trouble for former Telangana chief minister K Chandrashekar Rao’s family, ED on Saturday alleged that a nephew of BRS leader K Kavitha was “involved” in the transfer of illicit funds or the proceeds of crime in the Delhi excise policy-linked money laundering case.

The central agency informed the special Prevention of Money Laundering Act (PMLA) court of Judge Kaweri Baweja in Delhi that it conducted searches at the premises of the said relative, Meka Sri Saran, on Saturday after his role in this case came to the fore during the questioning of Kavitha over the last week.

Kavitha, the 46-year-old daughter of former Telangana chief minister K Chandrashekhar Rao, was arrested by ED on March 15 and she was produced before the court for extension of her custody on Saturday. The court sent her to agency’s custody till March 26.

The politician told reporters during her production in court that “this was a fraud and wrong case...we are fighting. Arresting these many political leaders during elections is a wrong thing and the Election Commission should intervene and protect democracy in the country.”

“The people should also think why are so many politicians being arrested during elections,” she said while taking through a security ring of ED and Delhi Police personnel.

The ED has alleged that Kavitha was a key member of the ‘South Group’ that has been accused of paying AAP alleged kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital, as part of the excise policy for 2021-22 which has been scrapped following allegations of corruption and cartelisation of liquor traders.

The agency told the court in its remand extension papers for Kavitha that it seized a mobile device of Saran during searches at BRS leader’s house at Banjara Hills in Hyderabad on March 15. It informed the court that Saran was called twice for questioning but he “failed” to appear.

It was found during the investigation in the last seven days that Saran was “involved in transfer/utilisation of proceeds of crime from Indo Spirits (which was created in conspiracy between Kavitha, Magunta Srinivasulu Reddy (YSRCP MP), his son Raghav Magunta and liquor businessman and Indo Spirits promoter Sameer Mahandru)”.

“Since, he (Saran) is in possession of information relevant for investigation in the case and he is not cooperating with the investigation, search is being conducted at his premises under Section 17 of PMLA on March 23,” ED said.

It also requested the court to allow its application for further interrogation of Sameer Mahandru for getting details of the said transfer/utilisation of the proceeds of crime by Saran and to ascertain the role of arrestee (Kavitha). Mahandru was arrested by ED in this case earlier.

The ED said it was “important to note” that Saran is a “close relative” of Kavitha and was also present at her premises that ED raided on March 15.

It added that when Kavitha was questioned about the business and profession of her nephew, she said “she was not aware” about it. 

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