The Enforcement Directorate alleged that K Kavitha, leader of the Bharat Rashtra Samithi (BRS), conspired with senior leaders, including Arvind Kejriwal and Manish Sisodia, to facilitate a payment of Rs.100 crore to Aam Aadmi Party (AAP) leaders.
NEW DELHI: Delhi liquor policy corruption case, former Delhi Chief Minister Arvind Kejriwal, along with Manish Sisodia, Durgesh Pathak, and Bharat Rashtra Samithi (BRS) leader K Kavitha, appeared before the court via video conferencing today.
The next hearing in this case is scheduled for January 17 at the Rouse Avenue Court in Delhi.
The Enforcement Directorate has alleged that K Kavitha, leader of the Bharat Rashtra Samithi (BRS), conspired with senior leaders, including Arvind Kejriwal and Manish Sisodia, to facilitate a payment of Rs.100 crore to Aam Aadmi Party (AAP) leaders.
Lt Governor Recommends Prosecution Sanction
Delhi Lieutenant Governor V K Saxena on December 22 has recommended granting prosecution sanction to the Enforcement Directorate (ED) to proceed against former Chief Minister Arvind Kejriwal in connection with the excise policy case, as per officials from the Lt Governor’s Secretariat.
Kejriwal, who is the leader of the Aam Aadmi Party (AAP), was granted bail by the Supreme Court in two separate cases filed by the ED and the Central Bureau of Investigation (CBI) related to the excise policy. His plea seeking to quash a trial court order that took cognizance of the ED’s chargesheet without prior prosecution sanction is currently pending before the Delhi High Court.
Reacting to the ED’s move to seek prosecution sanction, the AAP issued a strong statement, calling it an attempt to “politically malign” the party.
“The so-called liquor scam investigation has dragged on for two years, harassing 500 people, filing 50,000 pages of documents, and conducting over 250 raids, and not a single penny has been recovered,” the AAP said. “And multiple holes in the case have been highlighted by various court orders in the past years. The BJP’s real goal is to crush the AAP and Kejriwal by any means,” the party added.
ED’s Request for Prosecution Sanction
The Lt Governor’s recommendation allows the Ministry of Home Affairs or the Government of India, as the competent authorities, to grant prosecution sanction. Kejriwal’s arrest by the ED on March 21 followed his non-compliance with nine summons.
He was later granted bail by the Supreme Court on July 12 in the ED case and on September 13 in the CBI case. Kejriwal resigned as Chief Minister on September 17.
On December 3, the ED officially sought permission to prosecute Kejriwal, addressing Delhi Chief Secretary Dharmendra in his role as Chief Vigilance Officer. According to ED sources, filing a chargesheet without prosecution sanction is permissible for the ED but not for the CBI.
The ED’s request noted, “It is to inform (you) that this office has filed the Prosecution Complaint (SPC-7) against Sh. Arvind Kejriwal (Accused No. 37) on 17.05.2024 in the case, M/s IndoSpirits and Others, for irregularities in framing and implementation of the excise policy of GNCTD of Delhi for the year 2021-22.”
The ED further highlighted that a Special Court took cognizance of the prosecution complaint on July 9. It referenced a Supreme Court judgment from November 6, 2024, which clarified that Section 197(1) of the Criminal Procedure Code (CrPC) applies to offences under the Prevention of Money Laundering Act (PMLA).
The Supreme Court’s November 6 ruling held that prior sanction under Section 197(1) of the CrPC is necessary for prosecuting public servants under the PMLA. This decision was based on the case of IAS officers Bibhu Prasad Acharya and Adityanath Das, where prior sanction was deemed mandatory.
In its prosecution request, the ED stated, “In view of the above facts and circumstances, sanction may be required for prosecution of Sh. Arvind Kejriwal, former CM, Govt. of NCT of Delhi, for offence of money laundering under Section 4 of PMLA.”
Senior AAP leader Manish Sisodia questioned the transparency of the process, stating, “If L-G Saxena has granted sanction to prosecute Kejriwal, then why isn’t ED showing a copy of that sanction?”
Kejriwal’s lawyer, Abhishek Manu Singhvi, criticized the ED’s actions, saying, “This is a warped system of criminal law adopted by the ED and other agencies. Two years were spent in investigation and no arrest was made till just before the Lok Sabha elections. And now just before the Assembly elections, sanction is sought.”
Singhvi added, “While it is true that sanction is required only at the stage of cognizance, in practical terms it allows the ED to turn the law and the principles of liberty on their head and act selectively, opportunistically and according to temporary political exigencies. It may not be wrong in law but it is clearly unacceptable as a method of functioning tested by any civilized norms.”
Delhi’s Excise Policy
On September 4, 2020, when the Delhi government formed an expert panel to enhance state excise revenue, streamline liquor pricing, curb malpractices and tax evasion in the liquor trade, ensure equitable access to liquor supplies, and modernize the liquor business in line with the evolving dynamics of the Capital.
Within a month, the panel submitted its report, which was made public on the last day of 2020 for feedback from stakeholders and the general public. The report received over 14,000 responses and was subsequently reviewed by a Group of Ministers (GoM). In March 2021, the Cabinet directed the department to implement the GoM’s recommendations and draft the Excise Policy 2021-22.
Launched on November 17, 2021, amid the Delta wave of COVID-19, the policy aimed to boost government revenue and revamp consumer experiences by replacing traditional liquor vends with modernized liquor stores. Retail licenses for 849 outlets across 32 zones were auctioned to private bidders.
Key reforms included permitting bars in hotels, clubs, and restaurants to serve Indian and foreign liquor anywhere within their licensed premises, including terraces or balconies (out of public view), with extended operational hours until 3 a.m. License holders were also allowed to offer discounts and rebates on liquor prices set by the excise commissioner, leading to a drop in liquor prices.
In July 2022, Chief Secretary Naresh Kumar submitted a report to L-G VK Saxena, flagging procedural irregularities in the formulation of the policy. The report accused former excise minister Manish Sisodia of unilateral and arbitrary decisions, alleging that the policy caused financial losses to the government while certain individuals, including AAP leaders and ministers, benefited from kickbacks.
The report highlighted potential violations of the GNCTD Act 1991, Transaction of Business Rules 1993, Delhi Excise Act 2009, and Delhi Excise Rules 2010. Sisodia, then head of the excise department, faced allegations of financial quid pro quo that allegedly favored select alcohol merchants.
In June 2022, this newspaper first reported the alleged irregularities in the policy. By July, L-G Saxena had recommended a CBI probe into the matter.
