Kavitha is one of the several politicians and businesspersons, including Delhi Deputy Chief Minister Manish Sisodia, linked to the Delhi excise policy case. It is alleged that the Delhi government's excise policy for 2021-22 to grant licences to liquor traders allowed cartelisation and favoured certain dealers, who had allegedly paid bribes worth Rs 100 crore for it, a charge strongly refuted by the AAP. The policy was later scrapped and the Delhi LG recommended a CBI probe following which the ED booked a case against the same accused under the PMLA.
