Total PoC identified so far is Rs 1100 cr in excise case: ED in chargesheet against K Kavitha

New Delhi [India], June 3 : The Enforcement Directorate (ED) in its recent supplementary chargesheet filed in Delhi Court stated that the total Proceeds of Crime (PoC) identified so far is Rs 1100 Cr, out of which PoC of Rs 292.8 Cr is being dealt with in this Prosecution Complaint. The ED has recently filed a Supplementary prosecution chargesheet naming BR Leader K Kavitha and several others in connection with the Excise policy money laundering case.
The chargesheet stated that Bharat Rashtra Samithi (BRS) leader K Kavitha was involved in PoC of 292.8 crores out of which 100 crores (kickbacks to AAP leaders) & 192.8 crores (Profit of Indospirits). K Kavitha conspired with the members of the South Group and the AAP leaders through Vijay Nair (who was acting on behalf of the top leaders of the AAP) to pay kickbacks to the tune of Rs 100 Cr and receive undue benefits.
Kavitha by way of conspiracy and formation of Indo Spirits has participated in the generation, acquisition and use of the PoC of Rs. 192.8 Cr which was derived as a result of the conspiracy of kickbacks and payment of kickbacks. By showing Indo Spirits as a genuine business entity and acquiring the PoC of Rs 192.8 Cr she is involved in projecting this PoC as genuine profit from a legitimate business, stated the chargesheet.
K Kavitha also received the PoC of Rs 5.5 Cr from M/s Indo Spirits in the name of her associate Abhishek Boinpally. K Kavitha by paying kickback to the Govt functionaries through their middleman has participated in the generation of PoC of Rs. 100 Cr. K Kavitha has then participated in the transfer of this PoC to the Govt functionaries, as stated in the chargesheet.
It also stated that K Kavitha actively destroyed the digital evidence to conceal her role and involvement in this scam. K Kavitha has deleted evidence and contents of her mobile phone. K Kavitha presented 9 phones for examination, these phones were formatted and had no data. She was evasive and couldn't give any explanation for those formatted phones. Kavitha is also involved in acts of influencing the witnesses. Buchi Babu, CA of K Kavitha in his statement revealed that an associate of K Kavitha was being asked to retract his statements against Smt K Kavitha given on 23.02.2023 and 28.03.2023 to ED.
By way of participating in the conspiracy of formation of M/s Indo Spirits to recoup advance bribes of Rs. 100 Cr paid K. Kavitha is knowingly involved in the generation and transfer of PoC of Rs 100 Cr and the generation, acquisition, and possession of PoC Rs 192.8 Cr in the guise of profits generated by Indo Spirits (accused no. 4) during November 2021-August 2022. For acquiring this PoC, Smt K Kavitha in conspiracy with others, formed a partnership concern using dummies/proxy persons and projected them as genuine business partners. Further, she is also involved in the possession of Rs 32 cr approx. Through her proxy Arun Pillai which is part of her share of profits in M/s Indo Spirits. The same is recoupment of advance kickbacks paid. In this manner, Kavitha is involved in the generation, acquisition of Rs 192.8 Cr. possession and projection of the POC as untainted.
On May 29, 2024, the Rouse Avenue Court took cognizance of the Enforcement Directorate's supplementary prosecution complaint (Chargesheet) filed against BRS Leader K Kavitha and others in connection with the Excise policy money laundering case.
The chargesheet was filed against BRS Leader K Kavitha and other accused namely Chanpreet Singh, Damodar Sharma Prince Kumar and Arvind Singh.
On May 6, the Rouse Avenue Court of Delhi dismissed the bail petitions moved by Bharatiya Rashtra Samithi (BRS) leader K Kavitha in connection with CBI and ED cases related to the Excise Policy case.
BRS leader K Kavitha was arrested by the Enforcement Directorate on March 15, 2024 and by the Central Bureau of Investigation (CBI) on April 11, 2024.
Earlier, CBI through remand application stated that "Kavitha Kalvakuntla was required to be arrested in the instant case to conduct her custodial interrogation for confronting her with the evidence and witnesses to unearth the larger conspiracy hatched among the accused, suspect persons regarding the formulation and implementation of the Excise Policy, as well as to establish the money trail of ill-gotten money generated and to establish the role of other accused/suspect persons, including public servants, as well as to unearth the facts which are in her exclusive knowledge."
The CBI inquiry was recommended based on the findings of the Delhi Chief Secretary's report filed in July showing prima facie violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010, officials said.
The ED and the CBI had alleged that irregularities were committed while modifying the excise policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority's approval.
The beneficiaries diverted "illegal" gains to the accused officials and made false entries in their books of account to evade detection, the probe agencies said.
As per the allegations, the Excise Department had decided to refund the earnest money deposit of about Rs 30 crore to a successful tenderer against the set rules.
Even though there was no enabling provision, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19, the probe agency said and there was an alleged loss of Rs 144.36 crore to the exchequer.