Liquor Policy Case: Delhi HC Issues Notice On CBI's Challenge To Discharge Of Kejriwal, Sisodia; Asks Trial Court To Defer ED Proceedings

Justice Swarana Kanta Sharma added that she will stay the observations made by the trial court against the investigating agency.

For context, the trial court had rebuked the central probe agency for implicating the then Delhi CM without any cogent material and for labelling the alleged accomplices as the South Group, on the basis of their region.

The judge further said, "I will ask the trial court to defer proceedings in ED case to a date after a date given by this court and await proceedings of this case."

This, after the Solicitor General Tushar Mehta appearing for the CBI urged that discharge in the predicate offence should not hamper the ongoing proceedings of the Enforcement Directorate. "There are paras after paras (in the trial court order) where ED chargesheet has also been virtually given a go back," he had pointed.

The matter will now be taken up on March 16.

During the hearing, Mehta argued that the excise policy was "manipulated" to facilitate some traders and the CBI was able to trace the money laundering. However, the trial court proceeded to discharge the accused without considering the collaborative material on record.

"This is one of the biggest scam in history of national capital, the biggest shame...The impugned order turns criminal law on its head...This is an order of acquittal without trial," he said.

Mehta added that in a matter of this nature, there is possibility that a party can allege vendetta. However, CBI examined 164 witnesses which discuss how the conspiracy was hatched, where meetings were held, how the bribe was paid, and to whom it was paid.

"Clear case of corruption, bribe being taken, accepted, utilised, meetings taking place, forensic evidence. I have not seen such meticulous evidence being collected by any agency...We have collected emails, WhatsApp chats. This is not something in air. Unfortunately we could not convince but my learned friend concluded submissions and within 12 days, 600 page judgment. Speedy justice is a goal but it shouldn't result into miscarriage...All accused discharged, case closed. Nobody is put to trial. The entire exercise of the agency goes into vein," he added.

Mehta further argued that the trial court erred in disbelieving the approver statements at discharge stage. He submitted, "Discharge stage is not where you have to see collaborative material...When we allege conspiracy, we have to establish each part. All parts have to be assembled to make it a conspiracy in trial. Conspiracy is never hatched in open. Even this is disbelieved in discharge order...Approver statements don't need corroboration except at the stage of trial...Examination has to be done at the stage of trial, not at discharge stage."

On February 27, the trial court discharged all the 23 accused persons in the case, including political leaders Kejriwal, Sisodia and K Kavitha.

All who have been discharged are Kuldeep Singh, Narender Singh, Vijay Nair, Abhishek Boinpally, Arun Pillai, Mootha Gautam, Sameer Mahendru, Manish Sisodia, Amandeep Singh Dhall, Arjun Pandey, Butchibabu Gorantla, Rajesh Joshi, Damodar Prasad Sharma, Prince Kumar, Arvind Kumar Singh, Chanpreet Singh, K Kavitha, Arvind Kejriwal, Durgesh Pathak, Amit Arora, Vinod Chauhan, Ashish Chand Mathur and Sarath Reddy.

The Trial Court, in strong words, had rapped the CBI for lapses in investigation and said that the “voluminous chargesheet” has many lacunae not supported by any witness or statement.

It said that the CBI failed to make out a prima facie case against Sisodia. The Special CBI Judge had added Kejriwal was implicated without any cogent material.

For context, Sisodia was in jail for approximately 530 days.

Arvind Kejriwal spent approximately 156 days in jail across two periods. He was finally released on September 13, 2024, after the Supreme Court granted him bail in the CBI case, having already received interim bail in the ED case.

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.

Mere Commercial Gain By Private Party Under Govt Policy Can't Trigger Prosecution Sans Proof Of Corruption: Delhi Court In Liquor Policy Case