ED Raids Home of Kavitha's Nephew, Sister-in-Law in Delhi Liquor Scam Case

The ED informed the special Prevention of Money Laundering Act (PMLA) court of judge Kaweri Baweja in Delhi that it had conducted searches on Saturday after his role in this case came to the fore during the questioning of Kavitha over the last week, and that he was not cooperating with the probe. At least five members from ED’s Delhi office arrived in Hyderabad on Friday, sources said.

At around 6 am on Saturday, the ED officials formed into two teams and one of them knocked on the doors of the residence of Akhila, Kavitha’s husband D. Anil Kumar’s sister, at DSR Homes, Madhapur. They allegedly collected income-tax Returns (ITRs) of Akhila and her husband, and inquired about their business.

The ED officials also questioned the couple about their business links and money transactions with Kavitha.

Another team of ED officials went to Saran’s residence located at Kondapur and conducted searches. Saran was not available at his residence.

In their affidavit submitted in the Delhi PMLA court, the ED said: “It was revealed during the seven-day long questioning of Kavitha, that Meka Saran, Kavitha’s nephew, indulged in the transfer and utilisation of proceedings of crime from Indo Spirit (which was created in committing conspiracy between Kavitha, Magunta Srinivasulu Reddy and Sameer Mahendru).”

“However, Saran is not cooperating with the investigation agency, He is in possession of information in connection with the investigation,” the ED told the court. The ED also informed the court that a search was conducted on Saran's residence on Saturday under PMLA Act.

At the time of her arrest, ED officials had seized the mobile phone of Saran at Kavitha’s residence, He had failed to attend questioning even after the ED served notices twice earlier.

The ED officials informed the court that they had filed a petition before the High Court seeking custody of Sameer Mahendru and would question him along with Kavitha and others.

The ED has alleged that Kavitha was a key member of the ‘South Group’ that has been accused of paying the Aam Aadmi Party 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 was scrapped following allegations of corruption and cartelisation of liquor traders.

“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 23.03.2024,” the ED said.

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

The agency had earlier said that Kavitha was “one of the kingpins, a key conspirator and beneficiary of the Delhi excise policy scam.” It said that she had orchestrated a deal with Delhi Chief Minister Arvind Kejriwal and then deputy CM Manish Sisodia, wherein she along with other members of the South Group paid kickbacks through a strong intermediary and middlemen. It is expected that the ED will question Kavitha, Kejriwal and Sisodia together.

“In exchange of the kickbacks paid to the leaders of AAP she had access to the policy formulation and was offered provisions to ensure favourable position to her,” the ED claimed.

It further alleged Kavitha was “involved” in various activities relating to proceeds of crime to the tune of at least Rs 292.8 crore.” Kavitha, the ED alleged, was giving “evasive” replies during her custodial interrogation and confrontation with other accused and those involved in the case.