New Delhi, Feb 8 (IANS): In a latest development in the Delhi excise policy scam, the   CBI on Thursday arrested Butchibabu Gorantla, the former chartered accountant (CA) of K. Kavitha, daughter of Telangana Chief Minister K. Chandrashekhar Rao (KCR).

A source in the Central Bureau of Investigation (CBI) said that Hyderabad-based Gorantla is the former CA of Bharata Rashtra Samithi (BRS) leader K. Kavitha.

During the probe in the excise policy scam, the central agencies had allegedly identified a south group. Butchibabu is said to be the man who represented this group. It is also alleged that there are several other persons, including Sarath Reddy, K. Kavitha, Magunta Reddy, who are part of this south group.

A senior CBI official said that he was arrested for his alleged role in the formulation and implementation of the Delhi Excise Policy and thereby causing wrongful gain to the Hyderabad-based wholesale and retail licensees and their beneficial owners under the Delhi excise policy for the year 2021-22.

Gorantle will be produced in the court later in the day. The CBI said that they will seek his custodial remand in the matter.

The CBI has filed a charge sheet in the matter. The source said that they are in the process of filing a supplementary charge sheet, and wanted to collect more evidence to make the case watertight.

In the coming days, the CBI can issue summons to people having political backgrounds as the south group is full of political connections.