Delhi CM Kejriwal and AAP Named as Accused in ED’s Latest Chargesheet in Excise Policy Case

The Enforcement Directorate (ED) on Friday named Delhi Chief Minister Arvind Kejriwal and the Aam Aadmi Party (AAP) as accused in its seventh supplementary chargesheet related to the now-scrapped excise policy. This marks the first instance of Kejriwal being listed as an accused in an ED chargesheet. He was previously arrested on March 21 but was granted a 21-day interim bail by the Supreme Court last week. It is also unprecedented for a political party to be named as an accused by the ED in any case.

The central investigative agency had previously asserted that Kejriwal was “directly involved in the formulation” of the excise policy, which was allegedly designed to benefit the ‘South Group.’ This group, comprised of individuals from South India, reportedly received special access and undue favors, including stakes in established wholesale businesses and multiple retail zones, beyond what the policy allowed. In exchange, the ‘South Group’ allegedly paid Rs 100 crore to AAP leaders, with these bribes purportedly funneled into AAP’s campaign for the Goa assembly elections in 2021-2022.

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Additional Solicitor General SV Raju, representing the ED, told a Delhi court that AAP, as a beneficiary, is liable under Section 70 of the Prevention of Money Laundering Act (PMLA). This section stipulates that if an individual commits a contravention under the Act in the name of a company, everyone responsible for the company at the time is deemed guilty and liable for prosecution and punishment. Although a political party is not a ‘company’ under the Companies Act, 2013, the PMLA contains provisions that could extend its applicability to political parties.

The inclusion of these provisions suggests that any person in charge of, and responsible for, the conduct of a political party can be held liable for contraventions under the PMLA, broadening the scope of accountability to include political entities and their leaders.