Arvind Kejriwal's troubles in the Delhi liquor case show no signs of abating. On Wednesday, at Rouse Avenue Court, the CBI took him into a three-day custody for probing his role in the alleged liquor scandal. Yet, the ED has also been investigating this matter. So, are the issues in both investigations markedly different, or are the two agencies collaboratively working to interrogate Kejriwal comprehensively?
On June 25, the CBI engaged with Kejriwal inside Tihar Jail and documented his statement. Subsequent action was taken after this interaction. Now comparisons are drawn with the ED. However, both will scrutinize different aspects of the case. The ED investigates suspect financial transactions involved in the alleged liquor scam, while the CBI needs to establish corruption and bribery among government officials.
Allegations by the ED
In March, the ED arrested Kejriwal on money laundering charges. He faced a singular accusation - conducting and utilizing suspect transactions. The Prevention of Money Laundering Act (PMLA) Section 3 considers money laundering a crime, which includes concealment, possession, use, and projecting illicit funds as legitimate assets. According to The Indian Express, the ED alleged the scandal intended to privatize the wholesale liquor business.
Source: aajtak
CBI's Ongoing Investigation
The CBI registered a corruption case under the Prevention of Corruption Act (PC Act) in 2022, but with a difference. Kejriwal was not listed as an accused. During his March custody, Additional Solicitor General SV Raju clarified that being an accused under PMLA does not necessitate a pre-established criminal involvement.
When the CBI summoned Kejriwal for questioning in April, it was as a witness, not an accused. To put it simply, the ED is probing the alleged money trail, implicating Kejriwal in fabricating and using funds, whereas the CBI is investigating potential corruption in the case, needing to substantiate alleged bribery transactions. The accusation so far is that the Excise Policy unfairly benefited licensees, such as by granting fee discounts or extending licenses without approval.
Reasons for Kejriwal's Recent Arrest by CBI
While the investigation agency had the option to arrest Kejriwal, it needed concrete evidence to demonstrate his involvement in the alleged scam. ED's case lacked a direct link. It accused Delhi's CM and AAP's convener Kejriwal of being connected to the tainted fund. However, allegations of corruption are not optional in such cases.
Source: aajtak
Bail Difficulties Ahead
The ED wields the power of the PMLA Act, which criminalizes money laundering, a mostly non-bailable offense leaving bail at the court's discretion. ED can arrest an accused without a warrant and detain them for extensive periods under this act.
On the other hand, the PC (Prevention of Corruption) Act strengthens the CBI. Although an accused can seek bail under this Act designed to curb corruption in the governmental and public domain, they cannot be released until the public prosecutor presents arguments against the bail.
The New Liquor Policy and the Ensuing Controversy
Implemented by the AAP government in Delhi in November 2021, this policy removed the government's direct role in the business, opening doors for private companies. The Delhi government asserted that the new policy would end mafia rule and increase government revenue. However, the policy has been immersed in controversies from the outset. With escalated uproar, the government revoked it in July 2022.
July's Disclosure of the Alleged Scam
The alleged liquor scam came to light in July 2022 through a report by Narish Kumar, the then-chief secretary of Delhi. It levied serious charges against several AAP leaders, including Manish Sisodia. Delhi's LG VK Saxena recommended a CBI investigation, leading to a case registration on August 17, 2022. As the case also involved financial misappropriation, the ED too registered for a money laundering probe.
