K Kavitha's lawyer has accused ED of flouting Supreme Court directions while arresting her, PTI reported.

In response, ED said it hasn't made any statement in any court, including SC, that no coercive action will be taken against Kavitha, the ageny reported.

K Kavitha is former Telangana Chief Minister K Chandrashekar Rao’s daughter.

Earlier, ED produced the Telangana Legislative Council member K Kavitha before Special Judge M K Nagpal.

"We will fight it (case) out in court," the BRS leader K Kavitha told media persons while being produced before the court.

K Kavitha was arrested by the ED from her residence at Banjara Hills in Hyderabad last evening and brought to Delhi.

She has been accused in connection with alleged kickbacks paid to leaders of the AAP ahead of the formulation of now scrapped Delhi Excise Policy.

However, K Kavitha’s family and her supporters claim the arrest was in contempt of court.

They argue that the Supreme Court is due to hear an appeal in the case on March 19.

She is the third high-profile leader to be arrested in the case, after the former Delhi deputy CM Manish Sisodia and Rajya Sabha MP Sanjay Singh, both AAP leaders.

Earlier, Delhi Chief Minister Arvind Kejriwal was granted bail by Delhi’s Rose Avenue Court in the case on Saturday. Kejriwal appeared before the court following a complaint by ED against him for skipping their summons, after a sessions court on Friday refused to stay the judicial proceedings.

Delhi Excise Policy case:

The Delhi government’s 2021-22 excise policy aimed to revitalise the city’s flagging liquor business by replacing a sales-volume based regime with a license fee one for traders, and promised swankier stores and a better customer experience. However, it came to an abrupt end after Delhi’s lieutenant governor VK Saxena recommended a probe into alleged irregularities in the regime. This resulted in the policy being scrapped and being replaced by the previous policy.