Delhi High Court Rejects Manish Sisodia's Bail Plea In Delhi Liquor Policy Case, Says Allegations Of Misconduct 'Very Serious'

The Delhi High Court on Tuesday dismissed the bail plea of Aam Aadmi Party leader and former Deputy Chief Minister Manish Sisodia in the CBI case alleging corruption in implementation of excise policy for 2021-22.

Justice Dinesh Kumar Sharma pronounced the order. The court had reserved the decision on May 11

"…the allegations are very serious in nature that excise policy was formed at the instance of the “South Group” with malafide intention to give undue advantage to them. Such an act points towards the misconduct of the applicant, who was admittedly a public servant and holding highest position," Justice Sharma said.

The court added that Sisodia being an influential person and having held the post of Deputy CM with 18 portfolios and the witnesses mostly being public servants, the possibility of witnesses being influenced cannot be ruled out. The court said Sisodia was also undisputedly a prominent leader of Aam Aadmi Party which is having the present government in Delhi.

Thus, the role of the applicant in any policy decision including a formation of new excise policy replacing the old one has to be extremely relevant, the court said further.

”The statement of the concerned excise officers has been relied upon by the CBI. This court is restraining itself to make any comments and minute examination of the material on record so as to no prejudice is caused to the applicant or the prosecution during the trial. The gravity and the allegations do not entitle the accused to be admitted to bail,” it added.

Justice Sharma said that Sisodia failed the triple test in the view of the seriousness of the allegations and his position. Though the petitioner has resigned from the post of Minister, but still his position is influential qua the witnesses, the court said.

“In the present case, the allegation is that the New Excise Policy has been brought in and certain provisions have been added to render undue advantage to a particular group against the illegal gratification having been received from them. The allegations if found to be correct are very serious in nature and goes to the very foundation of the case. The court at this stage is not to meticulously examine the material and evidence on the record nor should it make any comment beyond the same as it may prejudice the parties during the trial,” said the court.

The court also said Sisodia was one of the most important functionaries in the government at the relevant time and, at this stage, he cannot be seen saying that he had no role to play. "He being the deputy Chief minister and Minister of Excise, was at the helm of affairs," it added.

While emphasising that courts cannot interfere into policy decisions of the government, Justice Sharma however said that where such policy decisions or schemes are alleged to have been taken “malafidely or have the taint of any corrupt practice” then certainly such decisions are required to be enquired into by investigating agencies and examined by the court.

Sisodia is currently in judicial custody in the cases registered by the CBI and ED. He was denied bail by the special judge in the CBI case on March 31. He was denied bail by the trial court in the ED case also on April 28 — his bail plea in the ED case is pending before the high court.

Seeking regular bail in the CBI case, Sisodia had argued that no evidence of money trail has been found from him by the central agency in the alleged liquor policy scam case and that the allegations against him are “in the realm of likelihood.”

Opposing Sisodia’s bail plea, the probe agency said that the matter involves a “deep-rooted and multi-layered conspiracy” in which Sisodia, who allegedly remained non-cooperative and evasive during investigation, is a key link to unearth the modus operandi.

Contending that Sisodia enjoys close nexus with the executive and bureaucrats, the CBI said that the AAP leader’s party colleagues holding high ranks “continue to make factually wrong claims” claiming that Sisodia is the victim of a political vendetta and to influence the investigation.

The AAP leader was arrested by the CBI on February 26 after an interrogation of more than 8 hours. He was named as an accused in the FIR. It is the case of the probe agency that there were alleged irregularities in the framing and implementation of the excise policy for the year 2021-22.

The CBI alleged that Sisodia was arrested as he gave evasive replies and did not cooperate with the investigation despite being confronted with evidence.

The CBI FIR states that Sisodia and others were instrumental in “recommending and taking decisions” regarding the excise policy 2021-22 “without approval of competent authority with an intention to extend undue favours to the licensee post tender.”

On the other hand, ED has alleged that the excise policy was implemented as part of a conspiracy to give wholesale business profit of 12% to certain private companies. It has said that such a stipulation was not mentioned in the minutes of meetings of the Group of Ministers (GoM).

The agency has also claimed that there was a conspiracy which was coordinated by Vijay Nair and other individuals along with South Group to give extraordinary profit margin to wholesalers. Nair was acting on behalf of the Chief Minister and Deputy Chief Minister of Delhi, according to the agency.

Title: Manish Sisodia v. CBI 

Citation: 2023 LiveLaw (Del) 460

Click Here To Read Order