Delhi HC to hear Kavitha's bail petition on May 27

At a time when the Enforcement Directorate (ED) is opposing bail to BRS MLC K Kavitha, the Delhi High Court will hear her bail petition in the money laundering case in the Delhi Liquor Policy case on Monday and Tuesday.

The ED has said Kavitha’s release will adversely affect further investigation to unearth the deep-rooted, multi-layered conspiracy. The ED, in its reply to Kavitha's bail plea, contended that she was a highly influential person and stands accused of having committed a grave economic offence. She can tamper with evidence and influence witnesses, it said. The ED will file a charge sheet in the case on June 7.

The ED has said Kavitha conspired with other people and was actively involved in the payment of kickbacks of Rs 100 crore and then in establishing the money laundering ecosystem, that is, M/s Indo Spirits through her proxy, which generated proceeds of crime of Rs 192.8 crore. Through such acts, Kavitha is involved in various processes and activities relating to the proceeds of crime of Rs 292.8 crore, the agency said in its counter-affidavit.

On Friday, Justice Swarana Kanta Sharma heard part of the of the arguments advanced by Kavitha's counsel and listed the case for May 27. Kavitha had challenged the trial court's order on May 6, in which her bail applications in the CBI's corruption case as well as the ED's money laundering case were dismissed.

Opposing Kavitha's bail plea, the ED said there was ample evidence to link her to the offence of money laundering. Huge amounts of proceeds from crime have been found to be laundered, and an investigation to trace the proceeds of crime is ongoing. There exists a reasonable apprehension of crucial evidence being destroyed if she is enlarged on bail. Her release on bail would adversely affect further investigation to unearth the deep-rooted, multi-layered conspiracy,” it said.

The ED said the statements of co-accused Arun Ramchandran Pillai, her alleged associate, revealed that he represented her interests in M/s Indo Spirits, which was formed as part of an understanding between AAP leaders and her that, in exchange for payment of Rs 100 crore to Delhi's ruling party, she would get stakes in some wholesale companies. It is established that Kavitha is the ultimate in-charge of the share of Arun Pillai in M/s Indo Spirits and was intrinsically involved in the conspiracy of policy formulation, conceptualisation of the kickback scheme, and the final profits generated or POC laundered through M/s Indo Spirits.”

The ED alleged that she had destroyed digital evidence to conceal her role and involvement in the scam and, if released on bail, she would actively involve herself in destroying the evidence.