The Ministry of Home Affairs has authorized the Enforcement Directorate (ED) to proceed with legal action against Arvind Kejriwal and Manish Sisodia regarding a money laundering case linked to the Delhi liquor scam. Previously, Delhi's LG Vinay Kumar Saxena had also approved proceedings against Kejriwal. Last November, the Supreme Court highlighted that the ED must obtain authorization before prosecuting any government employees.
Arvind Kejriwal had challenged the legitimacy of the ED's chargesheet against him and others in the Delhi High Court, questioning the absence of prior approval from authorities before lodging the complaint. In December 2024, the ED wrote to the LG indicating that approval was necessary on grounds that Kejriwal was termed the "kingpin and primary conspirator" in the liquor scam.
Why the Delay in CAG Report on Liquor Scam?: HC Questions
Recently, the Delhi High Court reprimanded the Aam Aadmi Party (AAP)-led Delhi government for delays in the Assembly's discussion on the Comptroller and Auditor General (CAG) report. A single-judge bench presided over by Justice Sachin Datta expressed concerns that the Delhi government hesitated to convene a special Assembly session to avoid placing the CAG report in the house, casting doubt on their integrity.
The BJP referred to the CAG report, claiming a revenue deficit of ₹2,026 crores due to the liquor policy scam, alleging bribery among several AAP leaders in the scandal.
Read More: Delhi Liquor Scam: CM Kejriwal's Custody Extended Until July 25
HC Criticizes AAP Government
The Delhi High Court censured the AAP government, remarking on their backtracking regarding the CAG report. The court stressed that the report should have been sent to the Speaker promptly for immediate discourse in the Assembly.
What is the Alleged Delhi Liquor Scam?
On November 17, 2021, the Kejriwal government in Delhi introduced the Excise Policy 2021-22. Under this new policy, the government withdrew from the liquor business, handing over all outlets to private hands.
The Delhi government claimed that the new liquor policy would end mafia dominance and boost government revenue. However, the policy was marred by controversies from the start and was revoked on July 28, 2022, following intensified uproar.
Details of the alleged liquor scam surfaced on July 8, 2022, through a report by Delhi's then-Chief Secretary Naresh Kumar.
The report leveled serious allegations against multiple senior leaders of the Aam Aadmi Party, including Manish Sisodia. Delhi's LG VK Saxena recommended a CBI probe, resulting in a case being registered by the CBI on August 17, 2022. Given the monetary discrepancies reported, the ED also initiated a money laundering investigation.
Read More: Delhi Liquor Scam Case: Rouse Avenue Court Hearing, Sisodia and Ke Kavita Appeared via Video Conferencing
The Chief Secretary's report accused Manish Sisodia of drafting the liquor policy improperly. Sisodia, who oversaw the Excise Department, allegedly extended undue benefits to liquor license holders under the new policy.
The report claimed that citing COVID as a pretext, a license fee of ₹144.36 crore was arbitrarily waived. Moreover, ₹30 crore obliged to be seized was instead returned to Airport Zone license holders.
