The judicial custody of Delhi Chief Minister Arvind Kejriwal in a corruption case related to the alleged Delhi excise policy is set to expire on September 3. The Supreme Court will hear Kejriwal’s bail plea, along with a challenge to his arrest by the Central Bureau of Investigation (CBI), on September 5.
Kejriwal is the only key political figure currently in custody related to the case. Several other individuals accused in the case have been released on bail in recent months, including former Deputy Chief Minister of Delhi, Manish Sisodia, Bharat Rashtra Samithi (BRS) legislator K Kavitha, and Vijay Nair, the former communication in-charge of the Aam Aadmi Party (AAP). Sanjay Singh, another AAP leader and Rajya Sabha member, was released on bail in April 2024.
The case involves approximately 40 individuals accused of money laundering by the Enforcement Directorate (ED) and corruption by the CBI. Five individuals, including Kejriwal, remain in judicial custody.
The investigation agencies allege that Arvind Kejriwal received bribes from a group referred to as the ‘South Group’ in exchange for favorable treatment during the drafting of the now-scrapped Delhi Excise Policy. The CBI also accuses Kejriwal of ensuring ₹90 lakh from the alleged ‘bribe’ for 40 AAP candidates in the 2022 Goa assembly polls.
The ED arrested Kejriwal on March 21, 2024. He was released on interim bail until June 1 for campaigning during the 2024 Lok Sabha elections. The CBI formally arrested him on June 26 inside the court. Kejriwal was granted bail in the ED case on July 12 but remains in custody for the CBI case.
In June 2024, the ED named Vinod Chauhan, a ‘hawala’ operator, as an accused in its ninth chargesheet related to the Delhi excise policy-linked money laundering case. The investigation agency claims Chauhan was involved in transferring ₹25.5 crore to fund the AAP’s 2022 Goa Assembly poll campaign. Chauhan is accused of transferring funds through the hawala route for AAP’s Goa elections and allegedly maintained regular contact with members of the ‘South Group.’ The ED seized ₹1.06 crore in unaccounted money from his residence. Chauhan was arrested by the ED in May and his bail plea is pending before the Rouse Avenue Court in Delhi.
In August 2022, Arun Ramachandra Pillai, a Hyderabad businessman, was included in the CBI’s list of 15 accused, which also included Manish Sisodia, in its FIR regarding the alleged Delhi excise scam. The ED arrested Pillai in March 2023 under the Prevention of Money Laundering Act (PMLA) in connection with the Delhi liquor policy case. Pillai is alleged to have been part of the ‘South Group’ that sent ‘kickbacks’ worth ₹100 crore to AAP leaders. He is accused of money laundering and providing illegal gratification to public servants to obtain liquor licenses in Delhi. The ED reported that Pillai held a 32.5% stake in Indospirit, a liquor manufacturing group. In June, the Delhi High Court denied Pillai interim bail.
In August 2022, the CBI arrested an Assistant Director of the ED and six other officials for accepting ₹5 crore in bribes to protect Delhi businessman Aman Dhall in the Delhi liquor scam case. Dhall, who allegedly collaborated with co-accused Vijay Nair and played a key role in facilitating meetings with members of the ‘South Group’, was arrested by the CBI in April 2022. The Delhi High Court denied him bail in June 2024. Nair was granted bail by the Supreme Court in the case on September 2, 2024.
The ED arrested liquor businessman Sameer Mahendru in September 2022 in connection with the Delhi excise policy scam. Mahendru is the managing director of Indospirits, where he allegedly held a 35% partnership stake. The company received a wholesale L1 license. Mahendru is also accused of obtaining two retail zone licenses under the name of Khao Gali restaurants, which are linked to his father-in-law. Mahendru was granted interim bail for 43 days in January 2024 by the Rouse Avenue Court. The Delhi High Court is currently hearing his bail plea.
