The 2025 Delhi Assembly Elections saw a historic BJP victory, ending AAP’s two-term rule as the party secured 48 out of 70 seats. AAP’s defeat was fueled by continuous clashes with the LG, bureaucratic confrontations, and the high-profile Liquor Scam, which tarnished its anti-corruption image. The Supreme Court’s rulings on Delhi’s governance and the GNCTD (Amendment) Act, 2023 further shifted power dynamics. With BJP now in charge, Delhi awaits stable governance and development without political conflicts.
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NEW DELHI: The recently concluded Delhi Assembly Polls 2025 gave a surprising result with the ruling BJP at centre sweeping to power with 48 out of 70 seats after 27 years and the incumbent AAP losing power after two terms getting just 22 seats of 70.
The bigger question that has been plaguing Delhi’s governance is the constant squabble between the lieutenant governor and elected government of the state. It must however be borne in mind Delhi is not a full state and is Union Territory with a legislature with multitude of authorities which seemingly make it difficult to govern.
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The heart of the rift between just ousted AAP government and the LG in Delhi is about who controls what. National Capital Territory of Delhi (NCT Delhi) is governed by Article 239AA of the Constitution of India which was passed as 69th Constitutional Amendment by the Parliament of India in 1991 along with Government of National Capital Territory of Delhi (GNCTD) Act, 1991.
Article 239AA of the Constitution of India define the executive powers of the elected government of Delhi. Article 239AA 3(a) clearly states that legislature of Delhi shall have rights to legislature on all issues except the provisions expressly excluded like entries 1, 2, and 18 of the State List, and entries 64, 65 and 66 of List II insofar as they relate to the entries 1, 2, and 18. Article 239AA(3)(b) confers on Parliament the power “to make laws with respect to any matter” for a Union Territory or any part of it.
Thus, while the Legislative Assembly of NCTD has legislative competence over entries in List II and List III except for the excluded entries of List II, Parliament has legislative competence over all matters in List II and List III in relation to NCTD, including the entries which have been kept out of the legislative domain of NCTD by virtue of Article 239AA(3)(a).
This is where there is a departure from the legislative powers of Parliament with respect to States. While Parliament does not have legislative competence over entries in List II for States, it has the power to make laws on entries in List II for NCT Delhi.
The dispute between then Delhi Government and Lieutenant Governor started in 2014 when Ex–Chief Minister Arvind Kejriwal had many run-ins with the bureaucracy leading to reports of altercation between bureaucrats and the chief minister. This constant tussle led to Ministry of Home Affairs leading to issuing a notification S.O.1368(E) dated 21.05.2015 that the Lt. Governor of the NCT of Delhi shall in respect of matters connected with ‘Services‘ exercise the powers and discharge the functions of the Central Government to the extent delegated to him from time to time by the President.
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This was in furtherance of notification dt O.1896 dt 23.07.2014 which stated that Anti-Corruption branch of police shall not take any cognizance of complaints against officers, employees and functionaries of the Central Government in accordance with constitutional scheme where police was under the Administration of MHA under Article 239AA of Constitution of India.
Basically, the Delhi Government under AAP and former CM Arvind Kejriwal setup the confrontation route with the central government i.e. using Anti-Corruption against central government officials and functionaries, enquiries into the alleged DDCA Scam which lead to series of notifications by Central Government making the LG powerful over the elected state government taking away powers over ACB as well as services and making LG act in sole discretion under this delegated authority.
These notifications were challenged by GNCTD (Delhi Government) before the Hon’ble Delhi High Court in Writ Petition (C) No. 5888 of 2015 which were dismissed by the Hon’ble High Court vide judgement dt 04.08.2016. The Delhi Government appealed against the said judgement before the Supreme Court, where in vide judgement dt. 4th July 2018 held that LG must act on the “aid and advice” of the council of ministers of Delhi.
While upholding the contents of the Constitution Bench in 2018 judgement held that executive of Government of NCT Delhi runs coextensive to the all subjects in List II & III except those which have been specifically excluded in Article 239AA i.e. Land, Law & Order and Police.
The 2018 judgement however clearly stated that Delhi is a special state being a national capital unlike other Union Territories and that Parliament has exclusive powers under Article 239AA(3)(b), to make laws with respect to all subjects in List II and III for NCTD and in case law passed by Delhi government exists then that will stand void if the parliament was to legislate on that issue.
The 2018 judgement left the question of control of services open to future constitution bench given it involved more complexities as the carder of services in Delhi be it DANICS (Civil Services) or DANIPS (Police Services) comes under Ministry of Home Affairs, Government of India.
In 2019, two-judge bench of the Supreme Court delivered a split verdict while ruling over the issue of services leading to reference of the matter to Constitution Bench. Vide order dt 11th May 2023, the Constitution Bench of Supreme Court while hailing federal structure, alluding to mandate of the elected government ruled that it is the Government of NCT Delhi which will have power over bureaucrats and services in smooth functioning of the Government.
This led to next round of fight between Delhi Government and LG specially when senior functionaries and ministers of the Delhi Government were under investigation by law enforcement agencies in the Liquor Scam and many bureaucrats who dealt with these files reported to LG. The LG on receiving such complaints had ordered for CBI enquiry and later an ED investigation as well. Thus, to overrule the Supreme Court judgement on control over services of 11th May 2023, the Central Government promulgated the GNCTD (Amendment) Ordinance, 2023 on 19th May 2023.
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The said ordinance restored the primacy of LG over services while expressly overruling the Supreme Court. Many critics called this unconstitutional and contempt of court however what is to be noted is that in Para 95 of 2023 judgement, the Apex Court expressly says since there is no express law on the entry 41 of the state list i.e. Services the power of GNCTD will extend however, if Parliament enacts a law granting executive power on any subject which is within the domain of NCT Delhi, the executive power of the Lieutenant Governor shall be modified to the extent, as provided in that law.
To fill the lacuna on ‘services’ i.e. Entry 41 in State List, the central government promulgated the said ordinance in respect to NCT Delhi. The ordinance which was later passed as a law by parliament in August 2023 also created an authority for transfer of bureaucrats where the elected CM even though being ex-officio chairperson was in minority and LG had the discretion to apply the mind and reject the proposal.
The said law has been challenged before the Hon’ble Supreme Court as violative of Federal Structure and Basic Structure doctrine however with the change of government in Delhi it is likely that challenge to the said law is likely to be withdrawn. It is also worth noting that the Apex Court also rightfully held in 2023 judgement that the legislative power of Parliament to override the powers of NCT Delhi since it is the capital of the country and therefore, must be dealt with different considerations.
In this manner, Parliament acting in its constituent power while introducing Article 239AA has provided sufficient safeguards and was cognizant of the necessity to protect concerns related to national interests. Thus, there is no denying that Parliament indeed has powers to overrule Delhi Government under Article 239AA of Constitution of India and is competent to pass this law.
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The power tussle between Government of Delhi and LG continued between 2014 to 2024 with multiple rounds of confrontations and litigations hampering the governance in Delhi state. The issue became more acrimonious after investigations in Liquor scam were launched where the complaints were made that Delhi Government’s excise policy was designed to favour certain private liquor vendors at the cost of Delhi exchequer.
CBI & ED investigations were launched which led to arrests of leading politicians including former Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia as well. They were later released on bail and matters are sub-judice.
However, the Supreme Court in the Manish Sisodia judgement in October 2023 made some prima facie observations that, a) The distributors earned 581 crores in 10 months of the policy b) One Time License Fee 7 crores from 14 distributors c) The Profit margins were increased from 5 to 12%. The SC in Manish Sisodia Judgement states:
“That 7% extra commission earned by the wholesale distributors of 338 crores constitutes as an offence under Section 7 of Prevention Of Corruption Act. These figures cannot be disputed and the new excise policy was meant to give windfall gains to select few distributors who in turn agreed to give kickbacks and bribes” (Para 24 & 25)
However, in the money laundering case by ED, the Supreme Court observed that 220 Crores were paid as bribe to Sisodia is not made out by CBI in Chargesheet thus difficult to accept it as proceed of Crime under PMLA (Para 10). Supreme Court further stated that whether 100 crore was actually paid by the liquor group is matter of debate and that 45 crores was transferred through Hawala for GOA campaign by AAP.
However, the court observed that Sisodia can be held vicariously liable under Section 70 cannot be alleged or sustained and that Prima Facie there is lack of clarity on the involvement of Sisodia for transfer of 45 crores to Goa by AAP.
These allegations are subject matter of trial by ED. Since the trial by ED could not be concluded in time both Manish Sisodia and Arvind Kejriwal were enlarged on bail in CBI as well as the ED case citing Bail over Jail as a rule without giving material findings on the merits of the case.
The legal battles between Government of Delhi and LG and the bureaucracy on other side meant that the governance in Delhi came to a grinding halt specially in 2024 when the former Chief Minister himself was in jail for months despite prima facie view that there was indeed corruption in Liquor Scam where Delhi Government’s excise policy caused windfall gains to private vendors and it is alleged some of that money paid as bribes was used for party finance and campaign.
While these issues are to be fully decided in court of law after trial it was sufficient to tarnish the clean anti-corruption image of the former chief minister of Delhi Arvind Kejriwal and his party AAP.
Resultantly in February 2025 Assembly polls, the AAP government was voted out of power on many issues but the constant run-ins with LG challenging the authority of central government, altercations with bureaucracy in Delhi and later liquor scam played an important role in sullying the public mood. The people of Delhi deserve responsible & accountable government which can deliver to people and not just take path of confrontation.
Hopefully the new Government in Delhi of the ruling party at Centre will work harmoniously in achieving the aspirations of the people of Delhi with all round inclusive governance, development for all sections of society without any confrontations.
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About The Author
Advocate Navroop Singh, an Intellectual Property Attorney, practices before the Delhi High Court and the Supreme Court of India.
He has co-authored The New Global Order and Korean Peninsula: A Pawn on the Geopolitical Chessboard and authored The Great Reset (2022).
He writes on law, geopolitics, and technology.
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