The Aam Aadmi Party (AAP) is the “major beneficiary” of the proceeds of crime generated in the alleged Delhi excise policy scam and has committed the offence of money laundering through its national convenor Arvind Kejriwal, the Enforcement Directorate (ED) has told the Supreme Court.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: The Enforcement Directorate (ED) has asserted to the Supreme Court that Delhi Chief Minister Arvind Kejriwal is the “kingpin and key conspirator” in the excise policy scam, refuting any claims that his arrest could undermine the principles of free and fair elections. The ED’s statements were part of a detailed 734-page reply affidavit which outlined the allegations against Kejriwal.
The affidavit describes Kejriwal’s alleged collusion with his cabinet ministers, other leaders of the Aam Aadmi Party (AAP), and additional individuals, accusing him of manipulating the excise policy of 2021-22 to benefit specific entities and “demanding kickbacks” from liquor business owners in return for policy favors.
“Arvind Kejriwal, chief minister of NCT of Delhi is the kingpin and key conspirator of the Delhi excise scam in collusion with ministers of the Delhi govt, AAP leaders and other persons,”
-the agency stated. Further, the ED elaborated,
“Arvind Kejriwal was involved in the conspiracy of formulation of the excise policy 2021-22 to favour certain persons and also involved in the demanding kickbacks from liquor businessmen in exchange for favours granted in the said policy.”
Addressing the legal standards for arrest under the Prevention of Money Laundering Act (PMLA), 2002, the ED emphasized that the law does not provide different criteria for arresting a Chief Minister compared to an ordinary citizen. The agency critiqued Kejriwal’s attempt to differentiate his position, stating,
“The petitioner by emphasising his position is attempting to carve out a special category for himself which cannot be accepted.”
In response to Kejriwal’s claims that his arrest would violate the concept of free and fair elections, the ED countered,
“The arrest of a person, however high he may be, for a commission of offence based on material, can never violate the concept of free and fair elections. If the aforesaid argument is accepted, politicians who are criminals would be granted immunity from arrest on the ground that he is required to canvass in the election.”
The agency further argued that distinguishing between a politician and an ordinary criminal in matters of arrest constitutes an “arbitrary and irrational exercise of power of arrest” which contradicts the principle of equality protected under Article 14 of the Constitution.
The agency pointed out that the arrest of Kejriwal was made because the investigating officer is in possession of material as required under section 19 which would indicate his guilt of the offence of money laundering punishable under the PMLA.
“A differential treatment in favour of a politician who is guilty of the offence of money laundering would violate ‘rule of law’ which would be a violation of the basic structure of the Constitution,” it said.
Justifying his arrest, the ED said Kejriwal had been arrested bona fide and not for any mala fide or extraneous reasons.
“It is categorically denied that the arrest was mala fide. Regarding the contention pertaining to mala fide, it is submitted that not only the contentions of the petitioner is baseless and ill-founded but it is vague, general and not specific,” it said.
It pointed out that Kejriwal was involved in the use of proceeds of crime thus generated in the Goa election campaign of the AAP to which he is the convenor and the ultimate decision maker.
The ED said Kejriwal has demanded kickbacks from the South Group in exchange for awarding favours to them in the formulation and implementation of the Excise Policy 2021-22 and highlighted that the chief minister was avoiding interrogation by not being present before the investigating officer despite nine summonses.
Reacting to the affidavit, the Aam Aadmi Party (AAP) alleged that the ED has become “a machine for telling lies”.
The ED said in its affidavit,
“The accused, by his conduct, has himself contributed and aided the investigating officer regarding the existence of the necessity to arrest, apart from the material in possession of the IO, to form the satisfaction that the petitioner is guilty of the offence of money laundering.”
Terming Kejriwal’s petition challenging his arrest as “devoid of merit” and liable to be dismissed, the ED said the material that formed the basis for the satisfaction of the investigating officer for arresting him had been perused by different courts.
“Second contention in this regard is that the material in possession of the investigating agency which formed the basis for the investigating agency to arrive at the satisfaction requisite for arresting the accused person, having been seen and perused by three different judicial authorities (courts) at three different levels has found judicial imprimatur and the consequential denial to grant the relief asked for by the petitioner in connection with the same,” it said.
The ED arrested Kejriwal on March 21, hours after the Delhi High Court refused to grant him protection from coercive action by the federal anti-money laundering agency. He is currently lodged in Tihar jail under judicial custody.
On April 15, the top court issued a notice to the ED and sought its response to Kejriwal’s plea.
The probe agency said in its affidavit,
“Even on the date of the search during his interrogation while recording his statement under Section 17 of the PMLA (Prevention of Money Laundering Act), he was avoiding answering questions by being evasive and totally non-co-operative even with respect to simple non-incriminating questions.”
Reacting to the ED’s affidavit, the AAP said,
“The ED has become nothing but a machine for telling lies. Each time the ED comes up with new manufactured lies at the whims of their masters, the BJP.”
The matter pertains to alleged corruption and money laundering in the formulation and execution of the Delhi government’s now-scrapped excise policy for 2021-22.
The ED has claimed the investigation done so far has revealed a part of proceeds of crime-cash totalling around Rs 45 crore-was utilised in the AAP’s 2022 Goa assembly poll campaign.
Reacting to the ED’s affidavit filed in the apex court, the AAP alleged the probe agency has become “a machine for telling lies”.
In a reply affidavit filed in the top court on Kejriwal’s plea challenging his arrest in a money laundering case stemming from the alleged excise policy scam, the ED has claimed statements of various persons engaged in the campaign related activities by AAP in Goa have revealed that cash payments were made to them for the work they did as survey workers, area managers, assembly managers etc.
“The Aam Aadmi Party (AAP) is the major beneficiary of the proceeds of crime generated in the Delhi liquor scam. Part of the proceeds of crime to the tune of cash of Rs 45 cr approx. has been utilised in the election campaign of AAP in Goa Assembly elections 2022,” it said.
“In this manner, AAP has committed the offence of money laundering through Arvind Kejriwal and the offences thus are covered by section 70, PMLA 2002,” the ED said.
Section 70 of the Prevention of Money Laundering Act, 2002 (PMLA) deals with offences by companies.
The ED said AAP is a political party comprising association of individuals registered under section 29-A of the Representation of the People Act 1951.
It said under section 29-A of the 1951 Act, only an association or body of citizens of India can make an application for registration as a political party and since AAP is an association of such individuals it got itself registered under the Act, more particularly under section 29-A.
“Since AAP is also an association of individuals, it would fall within the definition of ‘company’ as contemplated under section 70 of PMLA, 2002,” the ED said.
It said as the national convenor of AAP and member of the national executive, Kejriwal was ultimately responsible for the funds being used in the election including their generation.
The ED claimed that Kejriwal was and is not only the brain behind the AAP but also controls its major activities. He was also involved in deciding the excise policy as is evident from the statements of the witnesses, it said.
“He is also involved in demand of kickbacks which have inter-alia generated further proceeds of crime,”
-it said, adding that Kejriwal was in charge of and responsible for the said “company” when the alleged offence was committed.
“Therefore, not only the AAP but Arvind Kejriwal shall be deemed to be guilty of offences punishable under section 4 of PMLA and shall be liable to be prosecuted and punished as provided under section 70 of PMLA,” the ED said.
Section 4 of the PMLA deals with punishment for money laundering.
The probe agency alleged that contravention of the PMLA, particularly offences punishable under section 4 of the Act, have taken place-
“with his knowledge and he didn’t exercise at any time diligence to prevent such contravention”.
“The present offence which is punishable under section 4 of PMLA is committed amongst others by AAP which is a company as defined,” it said.
The ED said the offence of money laundering took place with the “consent/ connivance and or is attributable” to Kejriwal.
“Taking advantage of the fact that he was also the CM of Delhi, he used the said post to facilitate the offence of money laundering punishable under section 4 of PMLA by the ‘company’ i.e. AAP and therefore, without prejudice to his role and liability for the direct commission of the said offence, he is also vicariously liable for the offence committed by the AAP, being the national convenor of the said party and because of his role and active involvement in the day to day affairs and the conduct for the business of AAP,”
–it said.
Click Here to Read Previous Reports on Arvind Kejriwal
Click Here to Read Previous Reports of Delhi Excise Policy Scam
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
