Delhi liquor policy scam: Telangana CM's daughter K Kavitha's ex-CA arrested by CBI

Telangana Chief Minister Kalvakuntla Chandrashekar Rao, aka KCR's daughter and councillor K Kavitha's former Chartered Accountant Butchibabu Gorantla, was arrested by CBI on Wednesday in connection with the Delhi liquor policy scam. He will be produced in court today.

He was arrested by the central agency for his alleged role in the formulation and implementation of Delhi Excise Policy and for causing wrongful gain to Hyderabad-based wholesale and retail licensees and their beneficial owners.

K Kavitha's alleged role in the Excise scam

The sleuths of CBI and Enforcement Directorate who are probing the excise scam had earlier said that K Kavitha is part of the south liquor cartel.

Reportedly, businessman Vijay Nair, who has already been arrested, had received kickbacks amounting to Rs 100 crore on behalf of Aam Aadmi party leaders from a group called 'South Group' which is allegedly controlled by the TRS (now BRS) leader Kavitha, Aurobindo Pharma director Sarath Reddy and Andhra Pradesh's YSR Congress Party leader Srinivasulu Reddy.

Kavitha's name cropped up in the case because she allegedly had indirect stake in Indo spirits, a Delhi-based liquor wholesaler and whose owner is also an accused in the case, stated a report in The Quint.

Purrportedly, Kavitha and other members of the 'South Group' allegedly had 65% stake in Indo Spirits. The wholesaler had later received the business of Pernord Picard, biggest liquor manufacturer in the country which was allegedly facilitated by Nair.

The ED charge sheet in the case also stated that South Group had control over nine retailer zones in Delhi thereby having control over Delhi's 30% liquor market.

What is Delhi Excise scam?

The new excise policy had reportedly allowed each wholesaler to reap at least 12% and each retailer 185% in profits. The policy also mandated that each manufacturer should be in business with just one wholesaler at a time.

The policy came under the scanner of investigative agencies after Delhi Lieutenant Governor (LG) recommended a CBI probe into the alleged irregularities related to its implementation. The LG also suspended 11 excise officials.

The alleged scam also had Delhi's Deputy CM Manish Sisodia under the scanner however he has not been named in the CBI charge sheet. The charge sheet was filed on August 17, 2022.

The CBI in their FIR alleged that public servants recommended and took decisions pertaining to Delhi Excise Policy 2021-22 without approval of competent authority and intended to extend undue favours to licensees post tender.