Liquor Policy Case: CBI Opposes Adjournment Sought By Arvind Kejriwal, Others In Its Plea Against Discharge

The Delhi High Court on Monday (March 16) granted time to Aam Aadmi Party supremo Arvind Kejriwal, Manish Sisodia and others to respond to Central Bureau of Investigation's petition (CBI) challenging the discharge of the AAP leader and others in the corruption case related to the alleged liquor policy scam.

At the outset when the matter was called, Justice Swarana Kanta Sharma asked if the respondents were seeking time to file replies.

At this stage senior advocate N Hariharan informed the court that Kejriwal has filed an SLP before the Supreme Court challenging the high court's order staying trial court's remarks against CBI official.

To this Solicitor General of India Tushar Mehta appearing for CBI said that while it was the respondents right to challenge the high court's order however if this was being taken as a ground for adjournment then the respondents must ensure that the SLP is listed this week.

Mehta further argued, "This is matter where there are different aspects apart from legal aspects. Replies won't be necessary because we need to read the order impugned and the records. We seriously object to the order. It cannot remain on record even for a second more than what is necessary".

The court said, "Let them file reply" and listed the matter after two weeks. The court also continued operation of the interim order.

The court also recorded Hariharan's submission that Kejirwal has filed an SLP as well as a writ petition against high court's order rejecting his representation to transfer CBI's plea seeking transfer of the case to another bench.

Mehta meanwhile said, "This is a pattern. Make allegation, run away. Such litigants cannot be encouraged. Career out of allegations".

However Hariharan said that the respondents were only asking for one week's time.

To this Mehta said, "Existence of this order which is perverse is a prejudice to the system".

For context, Kejriwal had written to the Chief Justice of High Court seeking transfer of the case from Justice Sharma to another judge. However, the request was declined. The AAP leader then moved the Supreme Court for transfer by way of filing a petition under Article 32 of Constitution of India.

On February 27, the trial court discharged all the 23 accused persons in the case, including political leaders Kejriwal, Sisodia and K Kavitha. The trial court had also severely criticised the CBI's investigation in the case.

It may be noted that the case had become politically controversial, as Kejriwal was arrested and remanded to the custody amidst the 2024 Lok Sabha elections. He was later granted bail by the Supreme Court after 156 days of custody. AAP leader Manish Sisodia also spent 530 days in custody in the case.

The CBI's revision against the trial court's order was heard by Justice Sharma, who on March 9, prima facie observed that the trial court's observations were prima facie erroneous.

The AAP Chief later wrote to the Chief Justice seeking change of the Judge, saying that no specific reason was recorded to comment against the trial court's order. Kejriwal also stated that the Justice Sharma had earlier refused bail to many accused in the liquor policy case, and the Supreme Court had later granted them relief.

The AAP leader has sought transfer on the ground of a "grave, bona fide, and reasonable apprehension that the matter may not receive a hearing marked by impartiality and neutrality".

Kejriwal has also filed a separate Special Leave Petition challenging Justice Swarana Kanta Sharma's observations against the trial court's order.

The excise policy was framed by the Delhi Government to boost revenue and reform liquor trade in 2021, which was later withdrawn after allegations of irregularities in implementation were made and Lieutenant-Governor Vinay Kumar Saxena ordered a probe by the Central Bureau of Investigation into the policy.

This policy – which sought to completely privatise liquor trade in the national capital – was used to grant undue advantage to private entities at the cost of the public exchequer and smacked of corruption, the Enforcement Directorate and the Central Bureau of Investigation claimed.

Manish Sisodia was first arrested by the Central Bureau of Investigation in a case related to the excise policy on February 26, 2023 and later by the Enforcement Directorate on March 9, 2023. In the first information report (FIR) registered by the CBI, Sisodia and others have been accused of being instrumental in 'recommending' and 'taking decisions' regarding the 2021-22 excise policy, “without the approval of competent authority with an intention to extend undue favours to the licensee post tender”.

The central agency also claimed that the AAP leader was arrested because he gave evasive replies and refused to cooperate with the investigation, despite being confronted with evidence.

The AAP chief (Kejriwal) was formally arrested by CBI on June 26, 2024, while he was in custody of the Enforcement Directorate in the money laundering case arising out of the alleged liquor policy scam.

Matter now listed on April 06.

Case Title: CBI v. Kuldeep Singh & Ors