Kejriwal and Sisodia Granted Court Exemption Amidst Intensifying Liquor Scandal Probe

Kejriwal and Sisodia Granted Court Exemption Amidst Intensifying Liquor Scandal Probe

RMN News Report Highlights:

• ⚖️ On September 4, 2025, a Delhi court exempted Arvind Kejriwal and Manish Sisodia from appearing in a money laundering case, citing their involvement in Punjab flood relief work. However, some sources allege this was an excuse to “hoodwink the court” while they enjoy a luxurious life in Punjab.
• 🚨 A new CAG report, released in early 2025, revealed a revenue loss of Rs 2,027 crore due to the Delhi liquor policy, citing “felonious decisions to favour certain liquor vendors” and violations of constitutional protocols.
• 💰 The ED alleges Kejriwal is the “kingpin” of the liquor scam, claiming he was part of a conspiracy to create loopholes, arbitrarily increase wholesaler profit margins from 5% to 12% for kickbacks, and that 140 mobile phones were changed to destroy evidence.
• 📜 Despite being granted bail by the Supreme Court, Kejriwal, Sisodia, and Sanjay Singh allegedly did not pass the “triple test” for bail due to concerns about tampering with evidence and influencing witnesses, amidst allegations of a “bribe for bail” culture in India.

By Rakesh Raman
New Delhi | September 5, 2025

On September 4, 2025, a Delhi court provided a temporary reprieve to former Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia, granting them exemption from appearance in a money laundering case linked to the Delhi excise policy.

The reason cited for their absence was their alleged involvement in flood relief work in Punjab. Kejriwal’s counsel stated he was coordinating relief in flood-affected areas, while Sisodia’s application mentioned his role as the Aam Aadmi Party’s (AAP) in-charge for Punjab, providing support to residents. However, some sources allege that this excuse was made to “hoodwink the court” and that the AAP politicians are instead enjoying a luxurious life in Punjab at the public’s expense.

An important hearing is also scheduled for September 10, 2025, in the Delhi High Court, where Kejriwal is challenging the summons issued to him by the Enforcement Directorate (ED). The ED has raised objections about the maintainability of Kejriwal’s petition.

New CAG Report Reveals Financial Mismanagement and “Felonious Decisions”

These court developments unfold against the backdrop of a new report from the Comptroller and Auditor General (CAG) of India, released in early 2025, which has exposed significant financial irregularities in Delhi’s now-scrapped liquor policy of 2021-22. The report revealed a revenue loss of Rs 2,027 crore for the government.

According to an India Today report, the audit identified various lapses, violations of policy norms, “felonious decisions to favour certain liquor vendors,” and arbitrary distribution of licenses. It further detailed that decisions to implement the liquor policy were made without mandatory Cabinet approval or clearance from the Lt. Governor of Delhi. The AAP government also allegedly failed to present revised rules in the Delhi Assembly for ratification, thereby deliberately breaching constitutional protocols.

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Allegations of Kickbacks and Illicit Gains in Liquor Policy

The CAG report indicates that the AAP government, led by then-Chief Minister Arvind Kejriwal, received kickbacks or bribes from liquor vendors in exchange for favoring certain business entities, including those with dubious financial records. The ED also alleges that Kejriwal is the “kingpin” or key conspirator in the scandal, claiming he was part of a conspiracy to deliberately create loopholes in the excise policy to benefit specific liquor sellers. This alleged scheme involved arbitrarily increasing the profit margin for wholesalers from 5% to 12%, with a portion of this commission money purportedly returning to Kejriwal and AAP as kickbacks.

The ED asserts this alleged scheme resulted in a loss of Rs 2,631 crore to the public exchequer. Previously, the state’s revenue from liquor sales had reportedly dropped from Rs 6,300 crore to Rs 3,700 crore, despite government assurances of an increase to Rs 9,000 crore. Such a loss to the state exchequer constitutes a major corruption crime, falling under grand corruption and rent-seeking categories of white-collar financial crimes, where direct or physical evidence is not always required.

High-Profile Arrests and Investigating Agencies’ Role

Kejriwal was arrested on March 21, 2024, by the Enforcement Directorate (ED) for his alleged involvement in the money laundering crime linked to the liquor policy scam, after he defied nine summonses for questioning. The Central Bureau of Investigation (CBI) subsequently arrested Kejriwal on June 26, 2024, to interrogate him further in the same case. Kejriwal’s colleagues, including former Deputy CM Manish Sisodia and AAP Rajya Sabha member Sanjay Singh, were also jailed in connection with this case. In October 2023, while rejecting Sisodia’s bail application, the Supreme Court mentioned a possible embezzlement of Rs 338 crore in the liquor scam.

Investigators claim that in such white-collar financial crimes, recovery of money is not essential to prove a crime; rather, sufficient circumstantial evidence is enough to arrest and incarcerate the accused. The ED alleges to have sufficient evidence proving Kejriwal’s involvement. Additionally, the ED revealed that 140 mobile phones were changed by over 30 persons allegedly involved in the scam to destroy evidence, and Kejriwal reportedly did not provide access to his phone to investigating agencies. The attempt to destroy digital evidence is considered an obstruction of justice offence.

Bail Controversies and Questions of Judicial Integrity

Kejriwal, Sisodia, and Sanjay Singh have all been granted bail by the Supreme Court at different times (Kejriwal in September 2024, Sisodia in August 2024, and Sanjay Singh in April 2024), despite allegations that these leaders did not pass the “triple test” for bail. The triple test requires the accused to satisfy the court that they will not flee, influence witnesses, or tamper with evidence. It is alleged that Kejriwal and Sisodia tampered with evidence by destroying mobile phones or not providing access to them. Sanjay Singh, after his release, is alleged to be openly accusing agencies and the government, potentially influencing witnesses.

There are also allegations of a pervasive “bribe for bail” culture in India, where corrupt politicians may enjoy bail as a virtual acquittal. Notably, the ED did not object to Sanjay Singh’s bail application, leading to speculation that he may have turned approver to help convict the alleged “kingpin,” Kejriwal. It is also alleged that AAP leaders have tried to gain access to documents related to the liquor policy with the intention to tamper with evidence.

The Scandal’s Reach Extends to Punjab

The CBI, investigating the Delhi liquor scam, has expressed a desire to conduct similar investigations in Punjab, as the Delhi liquor policy was also implemented there. During a bail hearing for Kejriwal on September 5, 2024, the CBI alleged that Kejriwal’s party is “arm-twisting liquor businesses in Punjab to pay bribes” and that bribe money was used to contest the 2022 Goa Assembly election. The CBI also complained in the Supreme Court that Kejriwal is influencing the Punjab Government to obstruct a probe in the state.

Former Punjab Congress leader Ravneet Singh Bittu, now with the BJP, asserted in March 2024 that Punjab CM Bhagwant Mann would soon be arrested for implementing the liquor policy that led to the imprisonment of several AAP leaders in Delhi. Other Punjab Congress and Shiromani Akali Dal (SAD) leaders, including Navjot Singh Sidhu and Sukhbir Singh Badal, have also filed complaints and urged probes into an alleged Rs 500-crore liquor policy scam in Punjab. Investigating agencies have reportedly started questioning some Punjab Government functionaries and AAP leaders.

Broader Corruption Allegations Against AAP

Beyond the liquor scandal, AAP politicians face allegations in other corruption cases. In September 2023, the CBI launched an inquiry into alleged irregularities in the construction and renovation of Kejriwal’s house, where over Rs 45 crore of public money was allegedly squandered. The ED also accused AAP leaders of bribery and corruption in the Delhi Jal Board (DJB) scam, claiming the money was used for election funds. Furthermore, in May 2024, Delhi Lieutenant Governor V. K. Saxena ordered a probe by the National Investigation Agency (NIA) into Kejriwal’s alleged links with terror outfits.

Given the array of alleged financial crimes, the ED named the entire Aam Aadmi Party as an accused in the liquor scam in May 2024. In December 2024, Delhi LG Vinai Kumar Saxena granted permission to the ED to prosecute Kejriwal in the Delhi liquor policy case.

Recently, on August 26, 2025, the ED conducted searches at the residence of AAP leader Saurabh Bhardwaj and other locations in Delhi in connection with a money laundering investigation. The probe is linked to an alleged hospital construction scam in Delhi, stemming from an earlier case registered by the Anti-Corruption Branch (ACB) against Bhardwaj and former minister Satyendar Jain.

Ongoing Legal Challenges and Future Outlook

The legal battles for Kejriwal and other AAP leaders continue, with allegations that they are falsely blaming Prime Minister Modi and the BJP for Kejriwal’s imprisonment. There are also claims that Kejriwal is using public money to pay “complicit lawyers” to defend AAP corruption cases, a practice itself considered a form of corruption. If courts and investigating agencies diligently probe all cases, it is suggested that Kejriwal and many other AAP leaders may have to spend their remaining lives in jail. However, those on bail are currently enjoying it as a “virtual acquittal”.

By Rakesh Raman, who is a national award-winning journalist and social activist. He is the founder of a humanitarian organization RMN Foundation which is working in diverse areas to help the disadvantaged and distressed people in the society.

In order to inform the Indian citizens and the global community about the extent of corruption in India, he compiles “India Corruption Research Reports”. In his anti-corruption activities, he participated in a global petition led by Germany-based international organization Transparency International to call for the UN General Assembly Special Session against Corruption, UNGASS 2021, to direct all countries to set up central, public registers of beneficial ownership.

He runs a community-driven anti-corruption social service “Clean House” to help the residents of Delhi raise their voice against the growing corruption and injustice in housing societies where millions of people suffer because of rampant corruption and lawlessness. He also produces The Integrity Bulletin to cover global corruption cases.