Court Remands Delhi CM to ED Custody Until March 28 in Excise Policy Scam Case

Delhi Chief Minister Arvind Kejriwal was placed under the custody of the Enforcement Directorate for six days, extending until March 28, following a late-night court session on Friday. The court deliberated on arguments presented by Mr. Kejriwal contesting his arrest in connection with the alleged liquor policy scam.

During the hearing, the investigative agency labeled Mr. Kejriwal as the “kingpin” and “key conspirator” in the purported scam, alleging his role as a mediator between the ‘south group’ and other implicated individuals, including former Deputy Chief Minister Manish Sisodia (arrested last year) and AAP officer Vijay Nair.

According to the Source, the total proceeds from the alleged scam surpassed ₹600 crores, with a reported ₹100 crore allegedly transferred by the ‘south group’, which the agency asserts includes Bharat Rashtra Samithi leader K Kavitha, apprehended last week.

Mr. Kejriwal, marking the first sitting Chief Minister to face arrest, has vehemently refuted all allegations. His party has consistently maintained that the Enforcement Directorate has yet to recover any illicitly obtained funds.

Represented by senior advocate Abhishek Manu Singhvi, Mr. Kejriwal spent the night at the agency’s office. In his initial response post-arrest, Mr. Kejriwal affirmed to reporters that his life is devoted to the nation. Shortly thereafter, his wife, Sunita Kejriwal, issued an appeal on social media, emphasizing Mr. Kejriwal’s unwavering dedication to the country, both in and out of confinement.

“Kingpin”: What ED Said About Kejriwal

“Directly involved in the implementation of the policy and favoring the south group, he demanded kickbacks for such favors… supported by statements,” argued Additional Solicitor-General SV Raju on behalf of the Enforcement Directorate. “He is implicated in the utilization of proceeds of crime.”

The ED alleged that ₹45 crore of kickbacks were utilized to finance AAP’s electoral campaigns in Goa and Punjab in 2022. AAP’s 6.8% vote share in Goa affirmed its status as a national party, while its victory over the Congress in Punjab marked its first state government outside Delhi.

“We’ve traced the money trail. Funds for Goa came through four channels. These allegations are supported by one of AAP’s candidates… this individual received cash payments…”

Concluding its argument, the probe agency labeled Mr. Kejriwal as “the mastermind behind the party” and held him accountable for all AAP affairs. Mr. Raju also criticized the Chief Minister for disregarding nine ED summons, stating, “…he deliberately ignored summons…”

Regarding Mr. Nair’s role, the Additional Solicitor General stated, “He resided in a residence allocated to Kailash Gahlot (Delhi’s Transport Minister) and acted as the intermediary between the south group and AAP.”

“Can’t Arrest Without Reason”: Kejriwal’s Reply

During the court proceedings, Mr. Singhvi emphasized that the Enforcement Directorate’s decision to arrest Mr. Kejriwal lacked necessity.

“The power to arrest is not synonymous with the need for arrest. Just because the agency has the authority to arrest someone doesn’t justify doing so,” he argued, highlighting that tracing the money trail should only serve as grounds for questioning, not arrest.

Singhvi pointed out a concerning pattern where witnesses, initially not implicating Kejriwal, later become approvers, raising doubts about the credibility of their statements.

“There is no substantial evidence linking Kejriwal directly to the alleged offenses, except for statements from accused-turned-approvers mentioning encounters with him,” he stated, underscoring the potential bias of such statements made by individuals seeking pardon.

He urged the court to scrutinize the remand demand critically, considering the broader implications for democracy and the need for a thorough judicial evaluation.

In response, Mr. Raju highlighted the history of electronic evidence destruction in the case, suggesting that releasing Kejriwal could exacerbate such actions. He stressed the existence of concrete evidence indicating fraudulent activities and the manipulation of excise policies for electoral funding purposes.

“The evidence suggests a clear scam and fraud. Changes in the excise policy were orchestrated to finance election campaigns,” Raju asserted, emphasizing the gravity of the allegations against Mr. Kejriwal.

Kejriwal Withdraws Supreme Court Plea

Earlier, Mr. Kejriwal’s legal representatives withdrew a plea filed in the Supreme Court challenging his arrest. This decision came shortly after the Supreme Court rejected a similar plea filed by the Bharat Rashtra Samithi’s K Kavitha. Interestingly, the bench that dismissed Ms. Kavitha’s petition was also slated to hear Mr. Kejriwal’s plea.

In light of the court’s response to Ms. Kavitha’s petition, Mr. Kejriwal’s legal team opted to withdraw their plea, anticipating an unfavorable outcome. Sources indicated that the team deemed pursuing the petition futile since Mr. Kejriwal had already been arrested, and the court had previously remarked, “… just because you have the means (power and/or money) we can’t entertain you”.

“We are withdrawing the petition here (from the Supreme Court) as it is conflicting with the remand. We will argue the remand and return here…” Mr. Singhvi informed the apex court.

Kejriwal To Continue As Chief Minister?

Sources within Mr. Kejriwal’s legal team have indicated that there is no legal impediment preventing the AAP leader from continuing in his role as Delhi Chief Minister, despite his recent arrest triggering widespread protests across the country. These sources clarified that Mr. Kejriwal remains an accused and has not been convicted of any charges.

The AAP has remained firm in its stance that Mr. Kejriwal will continue to discharge his duties as the head of the government, even if it requires him to operate from within Tihar Jail. However, current guidelines may pose logistical challenges as Mr. Kejriwal will be restricted to only two meetings per week.

According to a former jail officer, an alternative option could involve house arrest. This would entail confining Mr. Kejriwal to his residence, provided the Lieutenant Governor, VK Saxena, approves the designation of his residence as a temporary detention facility.

Arvind Kejriwal Arrested

Arvind Kejriwal faced arrest on Thursday evening, following the Delhi High Court’s rejection of his plea for protection from arrest. A team of 12 officials swiftly arrived at his residence, where they conducted an inquiry, seized documents and materials, and subsequently arrested the three-time Chief Minister at 9 pm.

Mr. Kejriwal’s arrest relates to the Delhi liquor policy scam case, with the central agency labeling the AAP leader as a “conspirator”. The Enforcement Directorate (ED) alleges that the now-defunct policy offered exorbitant profit margins, with retailers benefiting by nearly 185% and wholesalers by 12%. The ED contends that a portion of these profits, amounting to over ₹600 crores, was siphoned off as bribes, with a significant portion allegedly paid by a ‘south group’, including BR’s leader K Kavitha. These funds purportedly financed the AAP’s election campaign expenses.

In addition to Mr. Kejriwal, two prominent AAP figures, Rajya Sabha MP Sanjay Singh and Deputy Chief Minister Manish Sisodia, have also faced arrest in connection with the case. While Mr. Singh was apprehended on October 5, Mr. Sisodia was arrested over a year ago, on February 26. Neither has received any reprieve from the apex court, indicating the likelihood of Mr. Kejriwal facing a similar fate.