In a significant development just days ahead of the 2025 Delhi Assembly elections, the Union Home Ministry granted approval to the Enforcement Directorate (ED) to prosecute Delhi Chief Minister Arvind Kejriwal and former Deputy CM Manish Sisodia in the controversial liquor excise policy case.
This decision follows Lieutenant Governor VK Saxena’s approval in December 2024, enabling the ED to move forward with its case against the Aam Aadmi Party (AAP) leaders. The ED alleges that Kejriwal was the “kingpin” of the scam linked to the now-scrapped liquor policy introduced in November 2021.
Legal Hurdles and Background
In November 2024, the Supreme Court mandated that prosecuting public servants under the Prevention of Money Laundering Act (PMLA) requires prior approval. The ED subsequently sought permission from LG Saxena to prosecute Kejriwal and Sisodia.
The Delhi High Court is also hearing Kejriwal’s challenge to a trial court’s decision to take cognizance of the ED’s chargesheet in the excise policy case, arguing the lack of specific sanctions under PMLA.
The liquor policy was scrapped in 2022 after allegations of corruption and irregularities surfaced. Saxena had ordered a Central Bureau of Investigation (CBI) probe, leading to widespread controversy.
Allegations and Findings
The AAP government’s liquor policy increased the annual liquor vending license fee from ₹8 lakh to ₹75 lakh. This move, according to a Comptroller and Auditor General (CAG) report released earlier this month, resulted in a loss of ₹2,026 crore to the state exchequer.
The CAG report also highlighted lapses, including Sisodia’s alleged disregard for recommendations from an expert panel. Sisodia, who oversaw the excise department at the time, has faced intense scrutiny over his role.
Arrests and Current Status
AAP leaders, including Kejriwal, Sisodia, Rajya Sabha MP Sanjay Singh, and former minister Satyendra Jain, were previously arrested in connection with the case but are now out on bail. Despite their release, the investigation remains active.