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Hyderabad, March 15 (PMI):The Enforcement Directorate (ED) on Friday arrested Bharat Rashtra Samithi (BRS) MLC K Kavitha in Hyderabad in connection with the Delhi excise policy-linked money laundering case. Kavitha was arrested after a day-long questioning followed by a raid at her Hyderabad residence.
She is being brought by an ED team here in the national capital. She would be produced before a special court in Delhi tomorrow, expectedly in the afternoon. In the arrest order, the concerned ED investigation officer said: “I believe that Smt. Kalvakuntla Kavitha w/o Mr. D R Anil Kumar, residing at H. No. 8-2316/S/H, Road No 14, Banjara Hills, Hyderabad, Telengana-500034 has been guilty of an offence punishable under the provision of Prevention of Money Laundering Act, 2002 (15 of 2003).”
“Now, therefore, in exercise of the power conferred upon me under sub section (1) of section 19 of the Prevention of Money Laundering Act, 2002 (915 of 2003), I hereby arrest the said Smt. Kalvakuntla Kavitha at 05.20 pm on 15.03.2024 and she has been informed of grounds for arrest. A copy of the grounds of arrest (containing 14 pages) have been served upon her.” The action comes almost two months after the ED issued summons to the 45-year-old daughter of former Telangana CM and BRS chief K Chandrashekhar Rao.
She was questioned thrice in this case last year and the central agency recorded her statement under the Prevention of Money Laundering Act (PMLA). The BRS MLC has asserted in the past that she had done nothing wrong and alleged that the BJP-led central government was “using” the ED as BJP could not gain “backdoor entry” into Telangana.
Earlier, the Central Bureau of Investigation had also questioned Kavitha in this case. The ED case of money laundering was filed taking cognisance of the CBI FIR. According to ED, Hyderabad-based businessman Arun Ramchandra Pillai, who was arrested last year in the case, “is one of the key persons in the entire scam involving payments of huge kickbacks and formation of the biggest cartel of the South Group”.
“South Group” comprises Telangana MLC Kavitha, Sarath Reddy (promoter of Aurobindo Group), Magunta Srinivasulu Reddy (MP, Ongole), his son Raghav Magunta, and others, the probe said. The South Group was being represented by Pillai, Abhishek Boinpalli and Butchi Babu, the federal agency said in its investigation. Pillai along with his associates was allegedly coordinating with various persons to execute the political understanding between the South Group and a leader of Aam Aadmi Party (AAP), the probe agency said.
