- Monday, March 10, 2025
By: Shajil Kumar
THE SUPREME COURT has provided bail to Aam Aadmi Party (AAP) leader Manish Sisodia in the corruption and money laundering cases linked to the alleged Delhi excise policy scam.
The court pointed out that Sisodia has been in custody for 17 months without trial and reprimanded trial courts and high courts to recognise that the principle of bail is a rule and jail is an exception.
The AAP leaders in Delhi and Punjab hailed the Supreme Court verdict as a “victory of truth” and hoped that other jailed party leaders “will also get justice”.
However, the BJP MP Bansuri Swaraj argued that the Supreme Court verdict in the Manish Sisodia case was a “procedural order” that does not absolve him of the offence.
She claimed that there is evidence against the AAP leader that establish his involvement in the “scam”.
Background
The AAP government in Delhi introduced a new excise policy in November 2021 aimed at modernising alcohol sales.
Under the policy, the government withdrew from the retail sale of liquor and allowed private licensees to run stores.
The government argued the move aimed to crack down on black marketing, increasing government revenue and improving the overall customer experience.
However, the response was mixed with some raising concerns about its potential financial and public health implications.
In July 2022, Delhi’s then-chief secretary Naresh Kumar reported violations in the policy to then lieutenant governor Vinai Kumar Saxena, who recommended a probe by the Central Bureau of Investigation (CBI).
The report submitted alleged “financial losses to the exchequer” amounting to more than ₹5.8 billion (£54.16 million).
The AAP government trashed the allegations but soon withdrew the new liquor policy.
The Enforcement Directorate (ED) alleged that the Delhi excise policy was intentionally designed with loopholes to favour AAP leaders and promote cartel formations.
It accused AAP leaders of receiving kickbacks from liquor businesses in exchange for preferential treatment, such as discounts and licence fee waivers.
The probe agencies also alleged the involvement of a “South Group” which provided AAP funds for its Goa election campaign and were assured of favours in liquor business.
This alleged group comprised K Kavitha, a BRS MLC and daughter of former Telangana Chief Minister K Chandrashekar Rao, YSRCP MP M Srinivasulu Reddy and Sarath Chandra Reddy of Aurobindo Pharma.
Arrests
The Enforcement Directorate (ED) arrested Manish Sisodia in the money laundering case stemming from the CBI FIR on March 9, 2023.
In October 2023, AAP leader Sanjay Singh was arrested for his alleged involvement in the liquor scam.
In March this year, Delhi Chief Minister Arvind Kejriwal was arrested by the ED and three months later by the CBI.
Another AAP functionary Satyendra Jain was arrested by the ED in May 2022.
Electoral bonds link
When the Supreme Court declared electoral bonds illegal this year and ordered the State Bank of India to publish all data on Electoral Bond transactions, it was found that Sarath Chandra Reddy had donated ₹50 million to the Bharatiya Janata Party in 2022, just five days after he was taken in custody.
He donated another ₹250 million to the BJP after he turned approver in the Delhi excise policy case.
Sarath Reddy turned approver in the Delhi excise policy case in June 2023 and the second payment to the BJP was made in November 2023.
Relief for some
After spending six months in jail, Sanjay Singh got bail. The case against him was that ₹20 million in illegal cash changed hands at his residence in New Delhi.
The ED did not oppose Singh’s bail application as its counsel was reminded by the court that the “money has not been recovered” and “whether you really require him now after six months”.
Kejriwal was granted a temporary release on bail for 21 days by the Supreme Court on May 10 to allow him to campaign in the general elections. He went back to jail on July 2.
On August 8, a Delhi court extended his judicial custody till August 20 in a corruption case registered by the CBI.
Satyendra Jain also continues to be behind bars, as the investigation into his role in the scam continues.
