Delhi High Court Stays Trial Court's Observations in Excise Policy Case

High Court's Intervention in Excise Policy Case

On Monday, the Delhi High Court intervened by staying the negative remarks made by a trial court against the Central Bureau of Investigation (CBI) while discharging all 23 defendants, including prominent Aam Aadmi Party figures Arvind Kejriwal and Manish Sisodia, in the alleged excise policy scandal.

Justice Swarana Kanta Sharma instructed the trial court to delay proceedings in the related money-laundering case until the High Court reviews the CBI’s appeal against the discharge order.

The High Court also issued a notice to the accused, requiring them to respond to the CBI’s appeal.

Earlier, on February 27, a special court at Rouse Avenue had discharged all defendants in the corruption case tied to the now-repealed excise policy of the Delhi government. The court criticized the CBI for implicating Kejriwal and Sisodia without substantial evidence, noting that the chargesheet had numerous inconsistencies lacking witness support.

The trial court suggested a departmental inquiry against CBI officials who had made a public servant the primary accused, stating there was no overarching conspiracy or criminal intent behind the excise policy.

During the hearing, Solicitor General Tushar Mehta, representing the CBI, clarified that the agency was not seeking a stay on the discharge but wanted to ensure that the trial court's ruling would not impact the ongoing money laundering investigation by the Enforcement Directorate.

Mehta further contended that the excise policy had been “manipulated” to benefit specific traders, asserting that the CBI had traced the financial transactions involved. However, he argued that the trial court had discharged the accused without adequately considering the corroborative evidence available.

Mehta described the situation as one of the largest scams in the capital's history, labeling it a national disgrace. He emphasized that a thorough investigation had been conducted, establishing every aspect of the conspiracy.

The High Court is scheduled to hear the case again on March 16.

Background on the Liquor Policy Case

The CBI has alleged that there were irregularities in the Delhi government's liquor excise policy, which has since been revoked. Following the CBI's allegations, the Enforcement Directorate initiated its own investigation into potential money laundering.

Both agencies claimed that the Aam Aadmi Party government altered the liquor policy by raising the commission for wholesalers from 5% to 12%, which allegedly allowed for the acceptance of bribes from wholesalers with significant market shares.

The AAP has denied these allegations.

Manish Sisodia, who served as the Deputy Chief Minister of Delhi, was arrested by the CBI in February 2023 on corruption charges related to this case. A month later, he was also arrested by the Enforcement Directorate.

Arvind Kejriwal, the then Chief Minister, was arrested by the Enforcement Directorate in March 2024.

Kejriwal spent approximately five months in jail across two separate periods before being released in September 2024 after the Supreme Court granted him bail in the CBI case, having already received interim bail in the ED case. Sisodia was incarcerated for around 17 months before obtaining bail.