Over Rs 1,100 crore laundered: ED in supplementary charge sheet in liquor scam

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Arvind Kejriwal before surrendering

Arvind Kejriwal

New Delhi: The Enforcement Directorate has alleged in its supplementary charge sheet filed against BRS leader K Kavitha before a court here that more than Rs 1,100 crore was laundered in the alleged Delhi excise scam.

According to the ED, out of Rs 1,100 crore, Kavitha was involved in proceeds of crime (PoC) worth Rs 292.8 crore.

The allegations were made in a supplementary prosecution complaint, ED’s equivalent to a charge sheet, filed before Special Judge Kaveri Beweja, who on Monday extended Kavitha’s judicial custody till July 3.

The judge extended the custody after Kavitha was produced before the court in pursuance of its earlier order issuing a production warrant against her.

The court had issued the warrants after taking cognisance of a charge sheet against the BRS leader in the case on May 29.

The court also granted bail to three co-accused persons -- Prince, Damodar and Arvind Singh. The three accused were charge sheeted without being arrested during investigation by the ED.

“As per the investigation so far, the total proceeds of crime identified is Rs 1,100 crore, out of which PoC of Rs 292.8 crore is being dealt with in this Prosecution Complaint. Through activities of the accused persons i.e. Kavitha, Champreet Singh, Prince Kumar, Damodar Sharma and Arvind Singh, huge proceeds of crime have been generated,” the charge sheet alleged.

The charge sheet claimed that Kavitha was involved in PoC (money generated and laundered in crime) of Rs 292.8 crore, out of which kickbacks of Rs 100 crore were given to AAP leaders.

“Kavitha conspired with the members of the South Group and the AAP leaders through accused Vijay Nair (who was acting on behalf of the top leaders of the AAP) to pay kickbacks to the tune of Rs 100 crore and receive undue benefits,” the documents claimed.

Kavitha, by paying kickback to the government functionaries through their middleman, has participated in the generation of PoC of Rs 100 crore, the charge sheet claimed, adding that she then participated in the transfer of this PoC to the government functionaries.

The ED further claimed that Kavitha, by way of conspiracy and formation of IndoSpirits, a company accused in the case, has participated in the generation, acquisition and use of the PoC of Rs 192.8 crore, which was derived as a result of the conspiracy of kickbacks and payment of kickbacks.

By showing IndoSpirits as a genuine business entity and acquiring the PoC of Rs 192.8 crore, she is involved in projecting this PoC as genuine profit from a legitimate business, the ED alleged.

“By way of participating in the conspiracy of formation of IndoSpirits to recoup advance bribes of Rs 100 crore paid, Kavitha is knowingly involved in the generation and transfer of PoC of Rs 100 crore and the generation, acquisition, and possession of PoC Rs 192.8 crore in the guise of profits generated by IndoSpirits during November 2021 to August 2022,” the ED alleged.

Kavitha also received the PoC of Rs 5.5 crore from IndoSpirits in the name of her associate and co-accused in the case, Abhishek Boinpally, the federal agency said.

The report further accused Kavitha of destroying the digital evidence to conceal her role and involvement in the case.

“Kavitha has deleted evidence and contents of her mobile phone. She presented nine phones for examination, which were formatted and had no data. She was evasive and couldn't give any explanation for those formatted phones,” the ED alleged.

It further alleged that Kavitha was also involved in acts of influencing the witnesses.

The 46-year-old BRS leader is in judicial custody in the two cases lodged by the ED and the CBI in the alleged scam.

The "scam" pertains to alleged corruption and money laundering in the formulation and implementation of the Delhi government's excise policy for 2021-22 which was later scrapped.

The ED arrested Kavitha from her Banjara Hills residence in Hyderabad on March 15. The CBI arrested her from Tihar jail.