In a dramatic turn of events, the Enforcement Directorate (ED) has filed a supplementary charge sheet against BRS leader K Kavitha, alleging her involvement in an extensive money laundering operation amounting to over Rs 1,100 crore in the Delhi excise scam. The new revelations surfaced during a court hearing before Special Judge Kaveri Beweja, who has consequently extended Kavitha’s judicial custody until July 3.
The ED’s supplementary prosecution complaint, equivalent to a charge sheet, has presented a detailed account of the financial transgressions associated with the alleged scam. According to the ED, out of the total Rs 1,100 crore, Kavitha is implicated in laundering Rs 292.8 crore. Specifics of the charge sheet claim that Kavitha had orchestrated kickbacks amounting to Rs 100 crore to benefit leaders of the Aam Aadmi Party (AAP).
“The investigation so far has identified total proceeds of crime worth Rs 1,100 crore. Out of this, PoC (Proceeds of Crime) amounting to Rs 292.8 crore is being dealt with in this Prosecution Complaint. Activities by the accused persons, including Kavitha, Champreet Singh, Prince Kumar, Damodar Sharma, and Arvind Singh, have generated these huge proceeds of crime,” the report elaborated.
As per the charges laid out by the ED, Kavitha and her co-conspirators formed IndoSpirits, a company implicated in the case, to facilitate the laundering process. This company was portrayed as a genuine business entity while its financial activities were used to recoup and circulate illicit gains. Through this elaborate scheme, the PoC of Rs 192.8 crore was projected as legitimate business profits from IndoSpirits.
The court hearing saw the judge extend Kavitha’s judicial custody after she was produced before the court on account of a previously issued production warrant. The Judge also granted bail to three other accused—Prince, Damodar, and Arvind Singh—who were named in the charge sheet but not arrested during the investigation.
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Documents submitted by the ED accuse Kavitha of a deliberate conspiracy involving members from the so-called South Group and AAP leaders. The charge sheet implicates Vijay Nair, identified as a key intermediary acting on behalf of AAP leaders, in the payment and distribution of the Rs 100 crore worth of kickbacks.
“Kavitha conspired with South Group and AAP leaders through accused Vijay Nair to pay kickbacks to the tune of Rs 100 crore for undue benefits,” stated the official document. By way of these corrupt activities and financial transactions, the involved functionaries allegedly manipulated government regulations to their advantage.
Allegations against Kavitha also point to attempts to destroy digital evidence concealing her role in the illicit operations. The ED claimed Kavitha presented nine mobile phones for examination, all of which were formatted and contained no data, rendering her explanation elusive.
Furthermore, the agency accused Kavitha of exerting undue influence on potential witnesses, further complicating the investigation. This, combined with her active participation in laundering funds through IndoSpirits, highlights the depth and complexity of the purported criminal activities.
K Kavitha, who is currently under judicial custody in connection with cases lodged by both the ED and the CBI, continues to deny any wrongdoing. The proceedings relate to an alleged scam involving corruption and money laundering linked to the Delhi government’s excise policy for the fiscal year 2021-22. The controversial excise policy was subsequently scrapped amid allegations of massive financial irregularity.
The saga took a significant turn in March when the ED arrested Kavitha from her residence in Hyderabad. Following this, the CBI also arrested her while she was lodged in Tihar jail. The officials continue to investigate the extent of the financial activities and the roles various individuals played in what is shaping up to be one of the substantial financial scams in recent years.
With judicial custody extended and the supplementary charge sheet adding new dimensions to the case, all eyes are now set on the ensuing legal proceedings and further revelations that the prosecution might unveil. The extensive operations described delineate layers of fraud and deception, impacting multiple stakeholders across different sectors, signaling a severe crackdown on financial corruption.
