[BREAKING] Another Setback For Arvind Kejriwal, Pause On Bail To Continue: Delhi HC

The Delhi High Court Today (June 25th) stayed the trial court order granting bail to Delhi Chief Minister Arvind Kejriwal in the Delhi excise policy case being probed by the Enforcement Directorate (ED).

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[BREAKING] Another Setback For Arvind Kejriwal, Pause On Bail To Continue: Delhi HC

NEW DELHI: Arvind Kejriwal will remain in jail after the Delhi High Court on Tuesday afternoon upheld its interim stay on a lower court granting the Delhi Chief Minister regular bail in the alleged liquor policy case.

The High Court had been approached last week by the Enforcement Directorate – the federal agency that arrested the AAP leader in March in connection with the liquor policy case. The ED filed a last-gasp petition challenging a city court’s regular bail order, which it called “perverse” and “flawed”.

Delhi High Court stays Arvind Kejriwal’s bail, says trial court didn’t properly appreciate ED case

“Interim bail was granted for elections. Once the arrest and remand of Kejriwal was declared valid by coordinate bench, it can’t be said that personal liberty of the applicant was curtailed in violation of law”

-Delhi High Court

Justice Sudhir Kumar Jain of the High Court criticized the trial court for its handling of the bail application of Arvind Kejriwal, granting bail on June 20, and for not adequately considering the material submitted by the Enforcement Directorate (ED). The High Court passed the order in response to a plea by the ED seeking a stay on the trial court’s decision.

Justice Jain remarked,

“The observation by the trial court that voluminous material cannot be considered is totally unjustified and it shows that the trial court has not applied its mind to the material. The vacation court ought to give adequate opportunity to ED to argue bail application.”

The High Court pointed out that the trial court did not adequately address the argument concerning the twin conditions for bail under Section 45 of the Prevention of Money Laundering Act (PMLA). The Court noted,

“There was a strong argument that the twin condition of Section 45 PMLA was not deliberated by the vacation judge. This court is of the opinion that Section 45 PMLA has not been properly discussed by the trial court.”

Further criticism was directed at the trial court’s finding of malafides on the part of the ED. The High Court highlighted that this finding was contrary to an earlier order by the High Court itself, which had rejected such a claim by Kejriwal. Justice Jain stated,

“Most important, the ASG referred to para 27 of the trial court order where the judge talks about mala fide by the ED. But this court is of the opinion that a coordinate bench of this court has said there was no mala fide on the part of the ED. The trial court should not have given any finding which is opposite to the finding of the High Court.”

The High Court’s order underscores the importance of thorough judicial consideration and adherence to legal standards, particularly in cases involving serious allegations like those under the PMLA. The criticism from Justice Jain indicates a need for trial courts to ensure they provide adequate opportunities for all parties to present their cases and to apply the law correctly.

The ED’s plea and the High Court’s subsequent order reflect ongoing judicial scrutiny of the bail process and the application of legal principles in high-profile cases. This development is significant as it emphasizes the judiciary’s role in maintaining legal integrity and ensuring that due process is followed in all judicial proceedings.

PREVIOUSLY IN APEX COURT

The Supreme Court on Monday expressed concerns over the Delhi High Court‘s decision to grant an interim stay on bail to Delhi Chief Minister Arvind Kejriwal in a money laundering case without issuing a final order.

A bench comprising Justices Manoj Misra and SVN Bhatti termed the High Court’s approach as “unusual.”

The bench was hearing an appeal filed by Kejriwal against the High Court’s order to grant an interim stay on his bail while reserving its judgment.

“In stay matters, judgments are not reserved but passed on the spot. What has happened here is unusual,”
-the Supreme Court observed.

The Apex Court on today fixed June 26 for hearing Chief Minister Arvind Kejriwal’s plea against the Delhi High Court order putting interim stay on his bail in the money laundering case linked to the alleged excise scam.

However, the apex court clarified that it would not replicate the High Court’s error of passing an interim stay. Instead, the Supreme Court scheduled the case for hearing on June 26, Wednesday.

“Orders on stay application were reserved and till then the lower court order granting bail was stayed. Parties were given the opportunity to file short submissions by June 24. ASG says order on stay application will be passed shortly and this requests for an adjournment. We deem it appropriate that the case be listed the day after, and if the High Court passes an order meanwhile, let that be brought on record,”

-the Supreme Court ordered.

Senior Advocate Abhishek Manu Singhvi, representing Kejriwal, argued that the High Court’s decision to stay bail on the very first day of hearing was unprecedented.

“Bail granted and bail reversal is different. The procedure of staying bail on the first day is unprecedented. Balance of convenience is in my favour. If the plea is rejected, then he goes back to jail and returns to the situation as it was three weeks ago when he surrendered under Supreme Court order,”

–Singhvi contended.

He also highlighted how the High Court initially halted the order before hearing the Enforcement Directorate’s (ED) appeal against the trial court’s order for a stay.

“The procedure is unknown. The stay was granted first and arguments were heard later,”

–Singhvi added.

“The lawyers made short submissions and that means the order will come in a day or two,”

-the Supreme Court remarked.

Singhvi questioned why his client could not be free in the meantime, emphasizing that Kejriwal is not a flight risk.

Additional Solicitor General SV Raju, appearing for the ED, informed the court that the High Court would pass its order on the ED’s plea for a stay the following day.

“If we pass an order, we will be prejudging the issue. It is the High Court and not a subordinate court,”

-the bench noted.

Senior Advocate Vikram Chaudhary, also representing Kejriwal, pointed out that Kejriwal has no criminal antecedents and is not a flight risk.

“He does not have any criminal antecedents, not a flight risk.. the investigation is on since 2022. Legality and validity of arrest is under challenge before this very court. Once the matter is sub judice, the court noted that a more liberal view was needed of this case. To say that something will break loose if he is freed would be the gravest travesty of justice,”

-Chaudhary argued.

Singhvi reiterated the unusual nature of the High Court’s initial interim stay order, which was passed without any reason before hearing arguments.

“The 10:30 order by the High Court was passed without any reason and it is after the order that arguments were heard. Once bail is granted, it cannot be reversed so easily. That is held by the Supreme Court. Mr. Raju conceded that he is not a flight risk etc,”

-Singhvi emphasized.

Solicitor General Tushar Mehta, appearing for the ED, rebutted Singhvi’s arguments, highlighting the procedural issues and the High Court’s approach.

“The court started by saying it is a high-profile question. The court kept saying to Mr. Raju to cut short your arguments etc. Court records in order that it is not possible to go through the papers in this case. That is a violation of Section 45,”

-Mehta argued.

The Supreme Court, aiming to proceed judiciously, decided to wait for the High Court’s order before making any further decisions.

“What we propose to do is let the High Court order come on record and we can keep the case next week. Without the order, how do we proceed,”

-the Supreme Court remarked.

Singhvi questioned the delay, asking why the Supreme Court could not stay the High Court’s order without a judgment, given the High Court’s prompt interim stay.

“If the High Court did a mistake, why should we repeat it,”

-the Supreme Court responded, emphasizing the importance of due process and liberty issues.

The Supreme Court’s cautious approach in this high-profile case underscores the complexities involved in balancing judicial procedures with individual liberties. The upcoming hearing on June 26 will be critical in determining the next steps in this ongoing legal battle.

Justice Sudhir Kumar Jain of the High Court issued an interim stay on Friday against the trial court’s decision to grant bail to Kejriwal.

The trial court had granted bail to Kejriwal on Thursday, directing his release on a bail bond of ₹1 lakh.

Special Judge Niyay Bindu of the Rouse Avenue Court remarked that the ED failed to provide direct evidence linking Kejriwal to the crime proceeds and also failed to establish that co-accused Vijay Nair acted on Kejriwal’s behalf. The judge criticized the ED for its perceived bias against Kejriwal.

Following this, the ED swiftly moved the Delhi High Court for an urgent hearing, where the matter was heard, and the High Court reserved its decision on the stay application.

Pending the final order, the High Court ordered an interim stay on the trial court’s bail order.

“I am reserving the order for two to three days. Till the order is pronounced, the trial court’s order stands stayed,” the High Court stated.

Consequently, the matter has been appealed to the Supreme Court.

Kejriwal was arrested by the ED on March 21 on allegations related to manipulating Delhi’s scrapped Excise Policy to benefit liquor sellers, with kickbacks allegedly funding AAP’s Goa campaign. Kejriwal, denying the charges, accused the ED of extortion.

In related arrests, former Delhi Deputy Chief Minister Manish Sisodia and MP Sanjay Singh were also detained. Singh is out on bail, while Sisodia remains in custody.

Earlier, the Supreme Court granted Kejriwal interim bail to campaign during the Lok Sabha elections. After the interim period ended on June 2, Kejriwal returned to jail. His subsequent medical bail plea was rejected on June 5 by the trial court.

Following the trial court’s decision to grant regular bail, the ED challenged it in the High Court, which imposed the interim stay now under appeal before the Supreme Court.

PREVIOUSLY IN DELHI HC

The Delhi High Court on Friday directed an interim stay on the trial court’s order granting bail to Aam Aadmi Party (AAP) leader and Delhi Chief Minister Arvind Kejriwal. The bail was connected to a money laundering case linked to the now-scrapped Delhi excise policy.

Justice Sudhir Kumar Jain passed the order following a challenge by the Enforcement Directorate (ED) against the trial court’s decision.

“I am reserving the order for two to three days. Till pronouncement of the order, the operation of the trial court order is stayed,”

–the Court said.

The Court mentioned that it would pronounce a detailed order within two to three days. In the meantime, the bail order granted by the trial court remains stayed, as directed by the single-judge bench.

During the hearing, the ED relied heavily on live court reporting by Bar & Bench to argue for a stay on the bail order. The Additional Solicitor General (ASG) argued,

“Section 45 of PMLA says Public Prosecutor should be given proper opportunity to be heard. I was not heard properly.”

He further added,

“When the turn of my learned friend (Sr Adv Chaudhari) came. He said he will be brief. He did not address the court in detail. But I said I will give a detailed reply because he hasn’t. He had glossed over everything. When I argued the Court said be brief.”

He emphasized that Kejriwal’s counsel was not hurried by the judge, stating,

“ED was deprived of the proper opportunity. The judge hurried the hearing when we were arguing. No such thing was said when they were arguing.”

The ASG insisted that the trial court order should be set aside based on these grounds alone,

“I am not saying all these things. Bar & Bench has said it. The trial court order needs to go on this ground alone,”

-he added.

BACKGROUND

The trial court, on Thursday, granted bail to Kejriwal, ordering his release subject to a bail bond of Rs 1 lakh. Special Judge Niyay Bindu of the Rouse Avenue Court criticized the ED for not providing any direct evidence linking Kejriwal to the proceeds of the crime and for failing to show that Vijay Nair, another accused, was acting on Kejriwal’s behalf. The special judge noted that the ED appeared to be acting with bias against Kejriwal.

Despite the bail order being passed on Thursday, the copy became available only on Friday.

Kejriwal was arrested by the ED on March 21, accused of being part of a conspiracy to exploit loopholes in the 2021-22 Delhi Excise Policy to benefit certain liquor sellers. The ED claimed that kickbacks received from liquor sellers were used to fund AAP’s electoral campaign in Goa, making Kejriwal both personally and vicariously liable for money laundering. Kejriwal has denied these allegations, accusing the ED of running an extortion racket.

Other AAP leaders arrested in the same case include former Deputy Chief Minister of Delhi, Manish Sisodia, and Member of Parliament Sanjay Singh. Singh is currently out on bail, while Sisodia remains in jail.

In May, the Supreme Court granted interim bail to Kejriwal to allow him to campaign for the Lok Sabha elections. However, he returned to jail on June 2 after the interim bail period expired. Kejriwal also sought interim bail on medical grounds, which the trial court rejected on June 5. Subsequently, his regular bail plea on merits was allowed by the trial court, leading the ED to approach the High Court.

As the legal battle continues, the Delhi High Court’s forthcoming detailed order will play a crucial role in determining the immediate legal future of Arvind Kejriwal amidst ongoing allegations and political controversies.

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