Apex Court Grants Bail To K Kavitha In CBI & ED Cases Related To Delhi Excise Policy Scam On Furnishing Bail Bond Of ₹10 Lakh Each

The Supreme Court today granted bail to K. Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of Telangana Chief Minister K Chandrasekhar Rao, who was arrested by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) in the Delhi excise policy scam case.

The Bench of Justice BR Gavai and Justice KV Viswanathan said that further custody of the appellant was not necessary, as the investigation had been completed and the trial would likely take a long time to conclude.

"The investigation is complete, and a prosecution complaint (ED Case) and chargesheet (CBI Case) have been filed. No further custody of the appellant is required...She has been behind bars for five months. The likelihood of a 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," the Court observed while granting bail.

The Court also emphasized that Kavitha is entitled to the beneficial treatment available to women under Section 45 of the Prevention of Money Laundering Act (PMLA). The Bench took issue with the Delhi High Court's earlier observation that an educated, sophisticated woman should not be granted bail under the provision, criticizing it as a "perverse" interpretation that could have broader negative implications if allowed to stand.

"Because if this Delhi High Court order is allowed to become law, this perverse observation 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 MP and common person, but here finding an artificial discretion not there in statute," the Court orally observed.

The Court said, "We find that the learned single judge has totally misdirected herself in applying the proviso," and accordingly, it directed Kavitha's release on furnishing a bail bond of Rs. 10 lakh in both cases.

During the hearing, Senior Advocates Mukul Rohatgi and Vikram Chaudhary appeared for Kavitha, and Additional Solicitor General (ASG) SV Raju appeared for ED and CBI.

Rohatgi argued that no proceeds of crime have been recovered from Kavitha. He argued that Kavitha, being a woman, is entitled to the special provision under the proviso of Section 45(1) of the PMLA.

On the contrary, Raju vehemently opposed the Bail pleas and argued that the statement of the various witnesses and the co-accused would clearly show that Kavitha was a kingpin in arranging the deal between the accused Arvind Kejriwal and the south group. Raju argued that the statements of the witnesses clearly show that the proceeds of the crime have passed through. The ASG further contended that the Court should avoid elaborate discussions on the merits of the case.

To this, the Court said, "We appreciate the fairness of the learned ASG in suggesting the court not record the detailed elaboration of the merits of the case. As a matter of fact, it is a consistent law from this court that this court shall avoid elaborate discussion at the stage of bail."

It is to be noted that on March 22, the Court had refused to grant bail to K. Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of Telangana Chief Minister K Chandrasekhar Rao, who has been arrested by the Enforcement Directorate (ED) in the Delhi excise policy scam case. The 3-Judge Bench had directed her to approach the Trial Court for bail and said that if an application of bail if filed it shall be decided expeditiously.