Arvind Kejriwal, the Chief Minister of Delhi, was arrested on Thursday in connection with the Delhi excise policy case, following several summonses issued by the Enforcement Directorate. Earlier in the day, the Delhi High Court refused to grant him temporary relief from coercive measures.
The Delhi excise policy case comprises two investigations, one by the Central Bureau of Investigation (CBI) and the other by the Enforcement Directorate (ED), both centred on alleged money laundering. These investigations are being conducted in response to concerns highlighted by Delhi Chief Secretary Naresh Kumar in a July 2022 report to Lieutenant Governor (LG) Vinai Kumar Saxena.
The report highlighted alleged procedural errors in the development of the excise policy, which were linked to then-Delhi Deputy Chief Minister Manish Sisodia. It claimed that Sisodia’s choices as Excise Minister resulted in considerable revenue losses for the exchequer, estimated at much over Rs 580 crore.
The investigation further stated that payments obtained by the AAP Delhi government and its leaders from alcohol company owners and operators were used to influence Assembly elections in Punjab and Goa in early 2022, after which the AAP formed the government in Punjab.
Following the filing of this report, the CBI detained Sisodia and identified him and 14 others, including AAP communications chief Vijay Nair, in a FIR. The ED said that the suspected proceeds of crime surpassed Rs 292 crore and emphasised the importance of determining the processes underlying these transactions.
The ED alleges a scheme involving the allocation of wholesale liquor contracts to private businesses with a stipulated 12% margin, resulting in a 6% bribe. The ED’s prosecution case further claimed that AAP officials received payments worth Rs 100 crore from a group known as the “South Group.” This group, purportedly involving K. Kavitha and others, allegedly obtained unfair benefits and holdings in wholesale and retail firms that exceeded the policy’s permissible limits.
The ED has named Arvind Kejriwal as a conspirator in the case, citing his role in obtaining favours pertaining to the Delhi excise policy in exchange for payments to AAP officials. Kejriwal’s alleged connection with one of the major suspects, Sameer Mahendru, was introduced as evidence. Kejriwal has frequently claimed that the ED’s summonses are politically motivated and organised by the BJP.
Kejriwal’s legal representation claimed in court that the summonses were ambiguous and arbitrarily issued, citing a lack of clear facts about his role and the summonses’ purpose. Kejriwal voiced concern about being detained without fair reason, particularly given the timing of the current summons, which coincided with the announcement of the general election date.
