The Delhi High Court is set to deliver its verdict on the bail petitions of Bharat Rashtra Samithi (BRS) leader K Kavitha in the CBI and ED cases related to the Excise Policy case on July 1, 2024.
Justice Swarna Kanta Sharma reserved the order after hearing arguments from all parties on May 28, 2024.
Senior Advocate Vikram Chaudhari and Advocate Nitesh Rana, along with Advocates Mohit Rao and Deepak Nagar, represented K Kavitha. Advocate DP Singh represented the CBI, while Advocate Zoheb Hossain appeared for the Enforcement Directorate (ED).
The CBI opposed the bail, arguing that the investigation is at a critical stage, involving other public servants and private individuals, and the flow of illicit funds. They asserted that Kavitha’s release could obstruct the investigation, especially as she does not meet the ‘triple test’ established by Constitutional Courts.
Similarly, the ED opposed the bail, emphasizing that in money laundering cases, standard bail conditions are insufficient due to the transnational nature of the crime and the potential influence of the accused. They argued that the accused could easily disrupt the money trail using modern technology, undermining the investigation and trial.
Previously, the Delhi High Court had issued notices to the ED and CBI regarding Kavitha’s bail petitions in the money laundering case linked to Delhi’s scrapped Excise policy.
Recently, the ED filed a supplementary chargesheet in the Excise Policy money laundering case at Rouse Avenue Court against Kavitha and other accused, including Chanpreet Singh, Damodar, Prince Singh, and Arvind Kumar.
Kavitha’s bail plea highlighted her role as a mother, with one minor child currently under medical supervision due to shock. She claimed that members of the ruling party were attempting to implicate her in the scandal. Her plea argued that the ED’s case relied solely on statements from approvers, witnesses, or co-accused under Section 50 of the PMLA, without any supporting documents or evidence of her guilt. She contended that her arrest violated Section 19 of the PMLA, and there was no corroboration of cash transactions or money trails in her arrest order.
On May 6, the Rouse Avenue Court dismissed Kavitha’s bail petitions in connection with the CBI and ED cases related to the Excise Policy case. Kavitha was arrested by the ED on March 15, 2024, and by the CBI on April 11, 2024.
The CBI had previously stated in a remand application that Kavitha’s custodial interrogation was necessary to uncover the broader conspiracy behind the formulation and implementation of the Excise Policy, establish the money trail of illicit funds, and identify the roles of other accused individuals, including public servants.
The CBI inquiry was initiated based on a report from the Delhi Chief Secretary in July, which indicated violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010.
The ED and CBI alleged that irregularities were made in modifying the excise policy, undue favors were extended to license holders, license fees were waived or reduced, and L-1 licenses were extended without proper authority approval. The beneficiaries allegedly diverted illegal gains to accused officials and falsified their accounts to avoid detection.
The Excise Department reportedly decided to refund about ₹30 crore to a successful tenderer against the rules. Additionally, a waiver on tendered license fees was allegedly allowed from December 28, 2021, to January 27, 2022, due to COVID-19, causing a purported loss of ₹144.36 crore to the exchequer.
