Delhi Liquor Policy Case: Centre Approves ED Prosecution of Kejriwal and Sisodia

New Delhi: The Central Government has approved the Enforcement Directorate’s (ED) request to prosecute Aam Aadmi Party (AAP) leader and former Delhi Chief Minister Arvind Kejriwal, along with senior party member and ex-Deputy Chief Minister Manish Sisodia, in connection with the 2021-22 Delhi liquor policy case.

This decision comes under the provisions of the Prevention of Money Laundering Act (PMLA).

Centre Grants Nod for Prosecution

The Union Home Ministry has sanctioned the ED’s move to prosecute Kejriwal under PMLA for his alleged role in money laundering tied to the now-scrapped excise policy. Similarly, the agency has received clearance to proceed with charges against Sisodia, who played a central role in framing the policy during his tenure as Delhi’s Excise Minister.

The Supreme Court’s November 2024 ruling mandated that the ED must obtain prior approval for prosecution under Section 197(1) of the Criminal Procedure Code (now Section 218 of Bharatiya Nagarik Suraksha Sanhita). This development led to delays in framing charges, as a special PMLA court in Delhi had paused proceedings until the required sanctions were secured. The Lieutenant Governor of Delhi, V.K. Saxena, granted his approval for Kejriwal’s prosecution last month.

Allegations and Arrests

Kejriwal and Sisodia are accused of receiving bribes from the ‘South Group,’ a cartel alleged to have controlled the liquor trade in Delhi during the 2021-22 fiscal year. The ED’s charge sheet claims that bribes were funneled to AAP’s campaign efforts for the Goa assembly elections. As the national convenor of AAP, Kejriwal is accused of being ultimately responsible for generating and using these funds.

Sisodia, arrested earlier in the case, has been implicated as the architect of the excise policy, which allegedly favored certain liquor traders in return for kickbacks.

The Central Bureau of Investigation (CBI) had already secured necessary sanctions in August 2024 to prosecute both leaders under the Prevention of Corruption Act, as part of its parallel probe into the excise policy.

Background of the Excise Policy Case

The Delhi government’s excise policy for 2021-22 aimed to privatize the liquor trade, purportedly increasing revenue and curbing corruption. However, the policy faced significant criticism and was eventually scrapped. Allegations emerged that AAP leaders received illicit payments from liquor traders, with funds allegedly routed to political campaigns.

The ED’s investigation revealed a web of financial transactions linked to the policy. Bribes were reportedly paid to secure licenses, and the funds were allegedly utilized to benefit the AAP’s election campaign in Goa.

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AAP’s Response

Both Kejriwal and Sisodia have consistently denied the allegations, accusing the BJP-led central government of using investigative agencies to target political opponents. The AAP leaders maintain that the charges are politically motivated and lack substantive evidence.

Despite the ongoing investigations and legal battles, Kejriwal and Sisodia remain active in campaigning for the February 5 Delhi elections. Kejriwal has announced his intent to file his nomination from the New Delhi constituency, reaffirming his commitment to contesting the charges.

What’s Next?

The legal proceedings against Kejriwal and Sisodia are expected to gain momentum following the Centre’s sanction. The case continues to draw widespread attention due to its political and legal implications, with the opposition alleging misuse of government agencies to stifle dissent.