K Kavitha was produced by the Enforcement Directorate in a court in Delhi on Tuesday on the conclusion of her custody remand in the Delhi excise policy scam case. The federal probe agency was earlier allowed by Special Judge Kaveri Baweja to interrogate Kavitha in custody.

Speaking to reporters before entering court, K Kavitha said, "It is an illegal case. We will fight it out. Jai Telangana".

The ED has alleged that Kavitha, the daughter of former Telangana chief minister K Chandrashekar Rao, was a key member of the 'South Group' that has been accused of paying the AAP kickbacks of Rs 100 crore in return for a big share of liquor licences in the national capital.

Delhi CM Arvind Kejriwal's Arrest

Delhi Chief Minister and Aam Aadmi Party (AAP) supremo Arvind Kejriwal has also been arrested in connection with the alleged Delhi excise policy case by the ED. He was arrested on March 21 and is currently in ED custody till March 28.

Allegations are that Delhi government's excise policy for 2021-22 to grant licences to liquor traders allowed cartelisation and favoured certain dealers who had allegedly paid bribes for it, a charge repeatedly refuted by AAP.

The policy was subsequently scrapped and the Delhi lieutenant governor recommended a CBI probe, following which the ED registered a case under the PMLA (Prevention of Money Laundering Act).