Delhi excise policy case: ED files complaint against AAP and CM Arvind Kejriwal

The Enforcement Directorate has filed a prosecution complaint against the Aam Aadmi Party and Delhi Chief Minister Arvind Kejriwal in the Delhi excise policy case. | Photo source: PTI

On May 17, the Enforcement Directorate (ED) filed a prosecution case against the Aam Aadmi Party (AAP) and Arvind Kejriwal, the party’s national president and Delhi chief minister, under the Prevention of Money Laundering Act (PMLA) in a case related to excise policy.

A week ago, the agency had filed another prosecution complaint against Bharat Rashtra Samithi leader K. Kavitha and four other accused. Ms. Kavitha, daughter of former Telangana Chief Minister K. Chandrashekar Rao, was arrested by an agency in Hyderabad on March 15. The ED accused her of conspiring with top AAP leaders, including Mr. Kejriwal and then vice-president Manish. Sisodia for his services in formulating and implementing the existing excise policy (2021-22).

The agency had earlier alleged that in return for favors it was involved in paying ₹100 crore to AAP leaders and that as agreed, Ms Kavitha and her associates were to recover the “proceeds of crime paid in advance to AAP and continue generating profits/proceeds of crime of this whole conspiracy.”

The ED money laundering case is based on the First Information Report registered by the Central Bureau of Investigation on August 17, 2022 against Mr. Sisodia and 14 others. It was claimed that this policy resulted in an extremely high profit margin of 12% for wholesalers and almost 185% profit margin for retailers.

Ms. Kavitha, it was alleged, belonged to the ‘Southern Group’ which paid ₹100 crore in advance as ‘bribes’ through the then AAP director, communications and media, Vijay Nair. In return for the payment, the group partners received 65% of the shares in Indo Spirits in order to recover future payments. These rates were controlled through “misrepresentation, concealment of true ownership and proxies.”

It was alleged that the party used around ₹45 crore of ‘bribes’ for its election campaign in Goa. Some of the funds were allegedly received and handled by Mr. Chanpreet along with two other Chariot employees. Mr. Arvind was arrested by the CBI in May 2023 in connection with his case for his alleged involvement in passing ‘bribes’.