The Central Bureau of Investigation (CBI) informed the Special Court that BRS leader K Kavitha purportedly "threatened" Aurobindo Pharma Promoter Sharath Chandra Reddy to pay Rs 25 crore to the Aam Aadmi Party for securing five retail zones allocated to his firm under the Delhi government's excise policy. The CBI sought Kavitha's custody in connection with the case.
Kavitha had told Reddy that in case of non-payment of money his business will be harmed in Telangana and Delhi under the Excise policy, the CBI has alleged. Reddy, previously accused under the Prevention of Money Laundering Act (PMLA) case investigated by the Enforcement Directorate, has since become an approver in the case. Notably, he has not yet been charged by the CBI.
The CBI, in its plea for custodial interrogation of Kavitha before Special Judge Kaveri Baweja, stated that it was at Kavitha's "insistence and assurance" that Reddy engaged in the liquor business in the national capital. Allegedly, she assured him of her connections within the Delhi government and pledged to assist him in establishing a liquor business in Delhi under the new excise policy.
Kavitha further told Sharath Chandra Reddy that the payments of upfront money of Rs 25 crores for wholesale business and Rs 5 crores for each retail zone were to be made to the Aam Aadmi Party in Delhi Government for getting liquor business and the same was to be paid to her associates Arun R. Pillai and Abhishek Boinpally, who would in turn coordinate with Vijay Nair, who was a representative of Arvind Kejriwal, the CBI has alleged.
A Delhi court has remanded K Kavitha to CBI custody until April 15 in connection with the alleged Delhi excise policy scam. According to the agency, during the formulation of the excise policy in March and May 2021, Kavitha's associates Arun R Pillai, Abhishek Boinpally, and Butchibabu Gorantla purportedly stayed at Hotel Oberoi in Delhi. Allegedly, they aimed to influence the policy in their favor through Vijay Nair by incorporating certain provisions.
After receiving assurance of support from Kavitha, Aurobindo Reality and Infrastructure Pvt. Ltd paid Rs 80 lakh to her NGO Telangana Jagruthi, under Corporate Social Responsibility (CSR) in March 2021, the CBI alleged.