The ED conducted a raid at Kavitha`s residence in Hyderabad before arresting her and bringing her to Delhi for questioning. This arrest follows previous high-profile arrests, including AAP leaders Manish Sisodia and Sanjay Singh.

Kavitha`s arrest came just a day before the scheduled announcement of the Lok Sabha election schedule, adding a political dimension to the situation.

Kavitha`s legal team argued that her arrest is illegal as her petition against the ED summons is listed for a hearing in the Supreme Court on March 19. 

BRS leaders and supporters have been protesting against Kavitha`s arrest, alleging it was pre-planned. They argued that the ED`s actions violated Supreme Court undertakings and accused the government of political targeting.

The ED alleged Kavitha was involved in the case and she was part of a "South Group" lobby who gave kickbacks to accused Vijay Nair to the tune of at least Rs 100 crore on behalf of AAP leaders.

Meanwhile, Kavitha has denied any wrongdoing and accused the Union government of using the ED for political ends.

Kavitha has been questioned previously by CBI in connection with the case at her residence in Hyderabad. 

The Delhi excise policy of 2021-22, now scrapped, is under investigation for alleged favouritism and corruption. Both the ED and CBI have been involved in probing the matter, with allegations of cartelisation and bribery.