The Union Ministry of Home Affairs (MHA) has granted approval to the Enforcement Directorate (ED) to initiate prosecution against former Delhi Chief Minister Arvind Kejriwal and former Deputy CM Manish Sisodia in connection with the alleged liquor scam. The two Aam Aadmi Party (AAP) leaders are accused of involvement in money laundering linked to irregularities in the now-canceled Delhi liquor policy for 2021-22, official sources confirmed on Wednesday.
The sanction orders for prosecution were issued earlier this month, marking a fresh development in the case. Both Kejriwal and Sisodia are currently out on bail, with Kejriwal having been granted regular bail by the Supreme Court in September, and Sisodia following suit in August, as part of ongoing legal proceedings concerning the alleged excise policy scam.
This new development comes after the Delhi special PMLA (Prevention of Money Laundering Act) court delayed the framing of charges against Kejriwal, who had challenged the trial court’s decision to proceed with charges without the necessary sanction for prosecution under the PMLA.
In a related development, the Central Bureau of Investigation (CBI) filed a chargesheet against Kejriwal under the Prevention of Corruption Act, receiving the required sanction for prosecution in August 2024.
The ED’s action follows a Supreme Court ruling on November 6, which mandated that the ED must also seek prior approval for prosecution under Section 197(1) of the Criminal Procedure Code (now Section 218 of the Bharatiya Nagarik Suraksha Sanhita) in money laundering cases. This requirement mirrors the sanction process for the CBI.
Kejriwal and the AAP are accused of accepting bribes from the “South Group,” a cartel allegedly controlling liquor distribution in Delhi and profiting from the excise policy. The ED claims that the group funneled bribes amounting to Rs 100 crore, with Rs 45 crore allegedly used to fund AAP’s election campaign in Goa.
According to the ED, Kejriwal, as the national convenor and a member of AAP’s national executive, was responsible for overseeing the party’s finances and operations. The agency has labeled Kejriwal as the “brain” behind AAP, accusing him of influencing policy decisions and demanding kickbacks. The ED claims to have identified proceeds of crime totalling Rs 1,100 crore.
Kejriwal, along with Sisodia and former AAP media head Vijay Nair, is also accused of soliciting additional funds beyond the Rs 100 crore bribe to finance election campaigns. The ED has referred to Kejriwal as the “kingpin” of the alleged irregularities surrounding the excise policy.
To date, the ED has conducted extensive searches across 245 locations nationwide, including in Delhi, Hyderabad, Chennai, and Mumbai, as part of the investigation. Over a dozen individuals, including Kejriwal, Sisodia, Sanjay Singh, and Vijay Nair, have been arrested in connection with the case.
Kejriwal was arrested on March 21 under the PMLA, and the ED filed a charge sheet on May 17, accusing him of being deeply involved in the alleged money laundering scheme.