Supreme Court grants bail to K Kavitha in Delhi excise policy 'scam'

Tribune News Service

New Delhi, August 27

In a major relief to BRS leader K Kavitha, the Supreme Court on Tuesday ordered her to be released on bail in the corruption and money laundering cases linked to the Delhi excise policy ‘scam’, saying her custody was not needed anymore as the probe was already over.

"The investigation is complete and a chargesheet has been filed. Custody of the appellant (Kavitha) is not necessary. She has been behind bars for five months. The likelihood of the trial being concluded in the near future is impossible. As said in various pronouncements of this court, undertrial custody should not turn into a punishment," a Bench led by Justice BR Gavai said, setting aside the July 1 Delhi High Court order denying her bail.

The top court ordered her release on bail in both – money laundering and corruption cases -- on furnishing bonds for Rs 10 lakh each. It also directed her to deposit her passport with the trial court and refrain from attempting to tamper with the evidence and influence witnesses.

It took note of the fact that the trials in money laundering and corruption cases were unlikely to be completed soon as there were 493 witnesses to be examined and the documentary evidence ran into around 50,000 pages.

The Bench also questioned the fairness of the probe agencies – ED and CBI -- for their alleged selective approach in making some accused as approvers. "Prosecution has to be fair. A person who incriminates himself has been made a witness! Tomorrow you pick up anyone as you please? You cannot pick and choose any accused. What is this fairness?” it said.

Kavitha – who has denied all allegations -- is the third prominent politician to be granted bail by the Supreme Court in the Delhi excise policy ‘scam’ after Aam Aadmi Party (AAP) leaders Sanjay Singh and Manish Sisodia.

On July 12, the top court had granted interim bail to Delhi Chief Minister and AAP national convenor Arvind Kejriwal in the money laundering case linked to the excise ‘scam’. However, Kejriwal continues to be in jail following his June 26 arrest by the CBI in a corruption case linked to the scam.

Arrested by the ED on March 15 from her Banjara Hills home in Hyderabad, the 46-year-old daughter of former Telangana chief minister K Chandrashekar Rao has been accused of being a key member of the "South Group", which allegedly paid the ruling AAP in Delhi kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital. Subsequently, the CBI arrested her on April 11 from Tihar jail in connection with the corruption case.

The Delhi High Court had dismissed Kavitha's bail pleas in both cases, saying she was prima facie one of the main conspirators in the criminal conspiracy related to the formulation and implementation of the now-scrapped Delhi Excise Policy, 2021-22.

The Bench – which also included Justice KV Viswanathan -- said Kavitha was entitled to special consideration available to a woman under the proviso to Section 45 of the Prevention of Money Laundering Act (PMLA).

The top court strongly disapproved of the Delhi High Court’s remarks that an educated, sophisticated woman was not entitled to bail under the beneficial provision for women under PMLA.

"If this Delhi High Court order is allowed to become the law, these perverse observations would mean no educated woman can get bail. It would apply at least to all courts in the jurisdiction of Delhi. What is this?! On the contrary, we say courts should not differ between an MP and common person, but here (Delhi HC is) finding an artificial discretion not there in the statute," the Bench said.

“What’s the material to show that she was involved in the crime?” the Bench asked the ASG.

On behalf of the probe agencies, Additional Solicitor General SV Raju said Kavitha could not be extended the benefit of the proviso to Section 45 of the PMLA as she destroyed evidence by formatting her phone and that her conduct amounted to tampering with evidence.

Raju’s submissions were countered by senior counsel Mukul Rohatgi on behalf of Kavitha. Rohatgi said that her iPhone was formatted since she had given it to her servant.

"Mr Raju, a phone is such a private thing. There will be other things in it... There may be partial removal of messages in exchanging. Like I have a habit of deleting messages in school and college groups where so many things are put and it gets messed up," Justice Viswanathan said.