Delhi, India, February 8, 2023: The Central Bureau of Investigation (CBI) has arrested a Telangana-based chartered accountant, Butchi Babu, in connection to the Delhi liquor policy case.
Babu, who was formerly employed with KCR’s daughter K Kavitha, was arrested for his alleged role in the formulation and implementation of the now-scrapped Delhi Excise Policy, which caused “wrongful gain” to Hyderabad-based wholesale and retail licensees and their beneficial owners, according to the CBI.
The Enforcement Directorate, which investigates financial crimes, had earlier alleged that K Kavitha was part of the “South Cartel” that benefited from kickbacks in the liquor policy case. K. Kavitha was questioned by the CBI in Hyderabad in December for over seven hours in connection with the case.
The Delhi Excise Policy was withdrawn last year by the Aam Aadmi Party (AAP) government after a CBI probe was ordered by the Lieutenant Governor of Delhi, VK Saxena, who is a representative of the Bharatiya Janata Party (BJP) led government at the centre.
The Enforcement Directorate and the CBI have claimed that there were irregularities committed while modifying Delhi’s excise policy with connivance and kickbacks from a lobby known as the “South Group.”
This group included K. Kavitha of Telangana’s ruling Bharat Rashtra Samithi, Magunta Srinivasalu Reddy, an MP from Andhra Pradesh’s ruling YSR Congress, and Sarath Reddy of Aurobindo Pharma.
According to the agencies, the license fee was waived or reduced, and undue favors were extended to liquor license holders under the Delhi Excise Policy. Delhi’s Deputy Chief Minister Manish Sisodia has also been named as an accused in the case and questioned by the agencies.
