Earlier, ED produced Kavitha before Special Judge for ED cases M K Nagpal, and sought her custody for 10 days.

While being produced before the court, Kavitha termed her arrest as illegal and said, "We will fight it (case) out in court."

ED arrested Kavitha from Hyderabad

Kavitha, 46, a Telangana Legislative Council member, was arrested by the central probe agency from her residence at Banjara Hills in Hyderabad Friday evening.

During the hearing, senior advocate Vikram Chaudhari, appearing for Kavitha along with advocate Nitesh Rana, told the judge her arrest was "illegal".

The counsel also accused the federal anti-money laundering agency of flouting the Supreme Court direction while arresting her. They claimed the apex court had directed the ED to not take any coercive action against Kavitha before it hears her plea against the summons issued by the agency to her on March 19.

"It is a black day that SC orders are violated, that an officer thinks he/she is above law," the counsel to court.

The ED, however, said it has not made any statement before a court, including the Supreme Court, that no coercive action will be taken against K Kavitha.

"There is enough evidence, witnesses' statements against K Kavitha in the case," the ED told the court.

The agency also accused Kavitha of destructing evidence in the case.

"We have summoned several witnesses to confront K Kavitha with," the agency told the court.

The judge reserved the order after hearing the arguments.