New Delhi: The Enforcement Directorate (ED) has issued summons to K Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of former Telangana chief minister K Chandrasekhar Rao, asking her to appear before it on Tuesday for questioning in the now-scrapped Delhi excise policy and paying kickbacks to Aam Aadmi Party (AAP) leaders, people familiar with the development said on Monday.

The BRS leader was first questioned by ED in March, 2023 in the case.

The federal anti-money laundering probe agency is trying to unearth her role in influencing the policy and her role alleged allegations of paying bribes.

It is alleged that Kavitha was in touch with AAP’s communication in-charge Vijay Nair, who was meeting businessmen from the liquor industry and politicians at the time of policy formulation and implementation.

Officials cited above said she is expected to be questioned about her association with Sameer Mahendru’s Indospirits Group in an effort to control multiple retail zones in Delhi, and in connection with advance payments of kickbacks worth ₹100 crore allegedly made by the South Group, of which she is a member, to AAP leaders.

Kavitha’s counsel Nitesh Rana said – “The Supreme Court has given directions not to summon her. So, this summon is in violation of the court order”.

During her previous interrogation session, she was confronted with the statements of Butchibabu Gorantla, her former chartered accountant and Arun Ramchandra Pillai, who represented her interests during multiple meetings with Nair and others. While Butchibabu was arrested by the Central Bureau of Investigation (CBI) in February, ED arrested Pillai in March last year.

Butchibabu, in his statement recorded before the ED officials in February 2023 stated that – “There was a political understanding between K Kavitha and the chief minister of Delhi (Arvind Kejriwal) and (former) deputy CM (Manish Sisodia) of Delhi. In that process, K Kavitha has also met Vijay Nair on 19th-20th March, 2021”.

The federal agency has already issued the fourth summon to Kejriwal asking him to appear before it on January 18.

Also Read: Won’t press for K Kavitha’s questioning in Delhi excise policy case: ED to top court

According to Butchibabu’s statement to the ED, seen by HT, “Vijay Nair was trying to impress K Kavitha with what he could do in the policy. Vijay Nair was acting on behalf of the CM of Delhi Arvind Kejriwal and (former) Dy CM Manish Sisodia. The understanding was that in exchange of the favours that can be done in the policy and in the Delhi liquor business for K Kavitha, some funds would given to the AAP”.

“Out of the deal that was between K Kavitha and top AAP leaders, she was given stakes in partnership with Sameer (Mahendru) and distribution of Pernod Ricard,” ED said in one of its court documents earlier.

Pillai, according to investigators, represented Kavitha’s ‘benami’ or illegal investments. He was allegedly actively involved in cartel formation and was an accomplice in paying bribe money on behalf of the South Group.

ED has alleged that a part of the ₹100 crore kickbacks generated in the Delhi excise policy was used in the AAP campaign in the 2022 Goa assembly election.

The agency has also pegged the loss in the excise policy irregularities at ₹2,873 crore.

The South Group comprises YSR Congress MP Magunta Srinivasulu Reddy, his son Raghav Magunta, Sarath Reddy (promoter of Aurobindo Group), and K Kavitha, Delhi-based businessman Sameer Mahendru. It was represented by Abhishek Boinpally, Arun Pillai and Butchibabu in meetings with Vijay Nair and other liquor businessmen.

The Delhi government’s 2021-22 excise policy aimed to revitalise the city’s flagging liquor business. It aimed to replace a sales-volume based regime with a license fee one for traders, and promised swankier stores, free of the infamous metal grilles, ultimately giving customers a better buying experience. The policy also introduced discounts and offers on the purchase of liquor, a first for Delhi.

The plan, however, came to an abrupt end, with Delhi’s lieutenant governor Vinai Kumar Saxena recommending a probe into alleged irregularities in the regime. This ultimately resulted in the policy being scrapped prematurely and being replaced by the 2020-21 regime, with AAP alleging that Saxena’s predecessor sabotaged the move with a few last-minute changes, which resulted in lower-than-expected revenues.