The Enforcement Directorate on Friday night arrested K. Kavitha — Bharat Rashtra Samithi (BRS) leader and daughter of former Telangana chief minister K. Chandrasekhar Rao — in connection with a money-laundering case linked to the now-scrapped Delhi liquor policy.

Sources said Kavitha had been brought to Delhi for further interrogation.

Kavitha’s arrest came hours after ED and income tax officials searched her Hyderabad residence, triggering protests from BRS supporters. Kavitha’s brother and former Telangana minister K.T. Rama Rao reached Kavitha’s residence after the ED officials took her into custody. Rao got into an argument with the ED officers, demanding to see a transit warrant.

An ED official said the agency in its chargesheet had alleged that Kavitha was part of a "south group" that paid Rs 100 crore in kickbacks to AAP leaders in exchange for undue benefits under the now-scrapped Delhi excise policy.

Kavitha has denied the allegations.