The Delhi High Court has reserved its decision on the bail petitions filed by Bharat Rashtra Samithi (BRS) leader K Kavitha, who is implicated in the Excise Policy case.
The case involves investigations by both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). Justice Swarna Kanta Sharma's bench made this decision after hearing arguments from both sides.
Representing K Kavitha were senior advocate Vikram Chaudhari and advocates Nitesh Rana, Mohit Rao, and Deepak Nagar. On the other side, advocate DP Singh appeared for the CBI, while advocate Zoheb Hossain represented the ED.
The CBI opposed Kavitha's bail plea, emphasising that the investigation is at a crucial stage. They argued that releasing Kavitha on bail could hinder the investigation, especially since she has not met the 'triple test' set by Constitutional Courts.
The CBI underscored the need to investigate further the involvement of other public servants and private individuals and to trace the flow of illicit funds.
Similarly, the ED opposed the bail, highlighting the transnational nature of money laundering and the potential influence Kavitha might exert if released. They pointed out that modern technology could be used to obscure money trails, complicating the investigation and trial.
Recently, the Delhi High Court issued a notice to both the ED and CBI regarding Kavitha's bail petition in the money laundering case linked to the now-scrapped Delhi excise policy.
The ED had filed a supplementary chargesheet in the Rouse Avenue Court, naming Kavitha and others, including Chanpreet Singh, Damodar, Prince Singh, and Arvind Kumar.
Kavitha's bail plea mentions her responsibilities as a mother of two, with one child currently under medical supervision. She contends that her involvement in the scandal is a political move by the ruling party.
Her plea argues that the ED's case relies solely on statements from approvers, witnesses, and co-accused, with no corroborative documents or evidence pointing to her guilt.
She also claims that her arrest was illegal, as Section 19 of the Prevention of Money Laundering Act (PMLA) was not adhered to, and there is no evidence of actual cash transactions or money trails.
Earlier, on May 6, the Rouse Avenue Court dismissed Kavitha's bail petitions related to the CBI and ED cases. Kavitha was arrested by the ED on March 15, 2024, and by the CBI on April 11, 2024.
The CBI stated that her custodial interrogation was necessary to confront her with evidence and witnesses, uncover the larger conspiracy in the excise policy's formulation and implementation, and establish the money trail and roles of other suspects.
The investigation was prompted by a report from the Delhi Chief Secretary in July, which highlighted violations of several acts and rules, including the GNCTD Act 1991 and the Delhi Excise Act 2009.
The ED and CBI allege that the excise policy was modified with irregularities, undue favours were granted to licence holders, licence fees were waived or reduced, and the L-1 licence was extended without proper approval.
The investigation revealed that illegal gains were diverted to officials, with false accounting entries made to avoid detection.
It was alleged that the Excise Department refunded about Rs 30 crore to a tenderer against the rules, and a waiver on tendered licence fees was allowed during the COVID-19 period, resulting in an alleged loss of Rs 144.36 crore to the exchequer.
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