Published Feb 27, 2026 | 4:44 PM ⚊ Updated Feb 27, 2026 | 4:44 PM
K Kavitha addressing the media. (Screengrab)
Synopsis: Speaking with the media, following the court order, a relieved Kavitha said: “I am thankful to the court for cutting through the CBI’s web of lies and acquitting me. I knew I would come out unscathed as my father KCR had said in the past but who and how would one compensate for the time that I had lost. In my hour of difficulty, Jagruthi activist and my family members stood by me. I am thankful to all of them. The ruling BJP at the Centre should know what the consequence would be if it tries to muzzle the voice of the opposition.”
In a case that has gripped Indian politics since 2022, former Member of Telangana Legislative Council (MLC) K Kavitha faced changes in the alleged Delhi excise policy scam until she was finally acquitted on Friday, 27 February along with all others who are accused in the case, by the Rouse Avenue Court in Delhi. Kavitha was Accused No: 17.
From her arrest on March 15, 2024, to her release on August 27, 2024, Kavitha spent approximately 165 days in jail.
Speaking with the media, following the court order, a relieved Kavitha said: “I am thankful to the court for cutting through the CBI’s web of lies and acquitting me. I knew I would come out unscathed as my father KCR had said in the past but who and how would one compensate for the time that I had lost. In my hour of difficulty, Jagruthi activist and my family members stood by me. I am thankful to all of them. The ruling BJP at the Centre should know what the consequence would be if it tries to muzzle the voice of the opposition.”
Special Judge Jitendra Singh discharged all 23 accused persons in the matter. Discharging the accused, the court rapped the CBI for lapses in investigation and said that the “voluminous chargesheet” has many lacunae not supported by any witness or statement. “There was no overarching conspiracy or criminal intent in the excise policy,” the court ruled. The court also slammed the usage of the term “South Group” in the charge sheet.
The case revolves around accusations of corruption and money laundering in the formulation and implementation of Delhi’s 2021-22 excise policy, which aimed to revamp liquor sales but was scrapped amid allegations of irregularities.
Kavitha, daughter of former Telangana Chief Minister K. Chandrashekar Rao, was accused of being a key figure in the “South Group,” a cartel of liquor businessmen and politicians allegedly involved in paying kickbacks to the then Aam Aadmi Party (AAP) government in Delhi for favourable policy adjustments.
The Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) probed the case, claiming the policy was manipulated to grant undue benefits to select wholesalers and retailers, leading to a loss to the public exchequer and the generation of illegal funds.
According to the agencies, the “South Group”, which included Kavitha along with figures like Hyderabad-based businessman Arun Ramchandran Pillai and others, allegedly paid around ₹100 crore in bribes to AAP leaders to secure wholesale liquor licenses and other advantages. Kavitha’s name first surfaced in ED chargesheets in December 2022, with allegations of indirect stakes in firms like IndoSpirit and using illicit funds for land deals.
Kavitha was arrested by the ED on 15 March, 2024, from her residence in Hyderabad’s Banjara Hills amid dramatic scenes, including protests by BRS supporters. She was initially remanded to ED custody and later sent to judicial custody in Delhi’s Tihar Jail. While in custody, the CBI also arrested her on 11 April, 2024, for further interrogation related to the corruption angle.
The charges against Kavitha included money laundering under the Prevention of Money Laundering Act (PMLA) by the ED, and corruption under Sections 120-B (criminal conspiracy) read with 477-A (falsification of accounts) of the Indian Penal Code, along with Section 7 of the Prevention of Corruption Act by the CBI.
The investigation agencies had alleged that she conspired to create loopholes in the policy, facilitated payment of kickbacks, and laundered proceeds through shell companies. Kavitha denied the allegations, calling them politically motivated, and her legal team argued there was insufficient evidence linking her directly to the bribes.
After the rejection of multiple bail pleas by lower courts and Delhi High Court in July 2024, the Supreme Court granted her bail on August 27, 2024, in both the ED and CBI cases. Kavitha walked out of Tihar Jail that evening, emotional as she reunited with family, vowing to “pay back with interest” those responsible for her ordeal.
(Edited by Sumavarsha)
