Telangana legislator K Kavitha, daughter of Chief Minister K Chandrashekar Rao, was questioned by the Central Bureau of Investigation (CBI) for over seven hours today over her alleged involvement in the now-scrapped Delhi liquor policy case.
Ms Kavitha was questioned at her home in Hyderabad by a six-member CBI team amid tight security. The police have put up barricades around her home to prevent gathering of her supporters.
Her party, the Telangana Rashtra Samithi (TRS), says she will cooperate with the agency.
The CBI had earlier summoned her on December 6. Ms Kavitha, seeking deferment of the questioning, had requested the authorities to visit her at her Banjara Hills home any day between December 11 and 15.
K Kavitha's name has come up in a remand report filed by the Enforcement Directorate, citing statements by an arrested Gurugram businessman, Amit Arora.
The central agency claimed Ms Kavitha was a key member of the "south group" which paid at least Rs 100 crore in kickbacks to leaders of Delhi's ruling Aam Aadmi Party (AAP) via another arrested businessman, Vijay Nair.
"As per the investigation carried so far, Sh Vijay Nair, on behalf of leaders of AAP has at least received kickbacks to the tune of Rs100 Cr from a group; called South Group (controlled by Sh Sarath Reddy, Ms. K Kavitha, Sh Magunta Srinivasulu Reddy) by various persons including Amit Arora. The same has been disclosed by the arrestee Sh Amit Arora in his statements,"read a statement from the ED.
Amit Arora is the Director of the liquor firm Buddy Retail.
Ms Kavitha has accused the BJP of conspiring to destabilise the KCR-led state government, and using central agencies to "defame" them.
As the state inches closer to the assembly election next year, Ms Kavitha said more and more leaders who have a mass appeal are being harassed by the BJP, especially the popular faces of the TRS.
The controversial liquor policy was allegedly used as a device to generate illegal funds, the ED has alleged, claiming that the policy would have allegedly caused loss to the state exchequer.
Delhi Chief Minister Arvind Kejriwal, Mr Sisodia and the AAP have rubbished charges of impropriety and have ascribed the allegations to a vendetta by the BJP, which controls the government and agencies like the ED and the Central Bureau of Investigation (CBI).
The BJP is also at war with Telangana Chief Minister KCR who has launched an all-out attack on the party as he prepares to foray into national politics.