ED gets Union Home Ministry’s approval to prosecute Kejriwal and Sisodia in Delhi excise policy case

The Union Ministry of Home Affairs (MHA) has approved sanction to the Enforcement Directorate (ED) to prosecute former Delhi chief minister Arvind Kejriwal and his former deputy Manish Sisodia under the Prevention of Money Laundering Act in the excise policy case.

The approval came a month after Delhi Lt Governor V K Saxena recommended that the probe agency be granted the sanction to prosecute AAP leaders accused of receiving over ₹ 100 crore kickbacks from liquor lobbyists.

In an order last November, the Supreme Court said that the ED has to take prior sanction before prosecuting public servants.

Kejriwal who leads the ruling Aam Aadmi Party (AAP) in the Capital was granted bail by the Supreme Court last year in separate cases filed by ED and the Central Bureau of Investigation (CBI) relating to the excise policy. He has a plea pending before the Delhi High Court in which he has sought quashing of a trial court order that took cognizance of the ED charge sheet without prior sanction for his prosecution.

According to sources, ED had moved an application to prosecute Kejriwal and Sisodia. “Officials of the ED were waiting to get approval and it came a few days ago to prosecute both of them,” the sources said.

Kejriwal was arrested on March 21, 2024, by ED after he failed to appear before it even after nine summons. He was questioned by the ED and arrested after the central agency found that he was not cooperating in the investigation. He was granted bail by the Supreme Court in the ED case on July 12 and in the CBI case on September 13 of that year. He resigned as the Delhi chief minister on September 17.

Sisodia was arrested by CBI on February 26, 2023, and by ED 12 days later. The Supreme Court granted bail to him on August 9, 2024, saying, “There is not even the remotest possibility of the trial being concluded in the near future”.

According to officials, ED sought permission to prosecute Kejriwal on December 3, and wrote to Delhi Chief Secretary Dharmendra in his capacity as Chief Vigilance Officer.

ED sources were quoted as saying that earlier the agency was not required to take prosecution sanction before filing a charge sheet — it is mandatory for CBI.

“It is to inform (you) that this office has filed the Prosecution Complaint (SPC-7) against Sh. Arvind Kejriwal (Accused No. 37) on 17.05.2024 in the case, M/s IndoSpirits and Others, for irregularities in framing and implementation of the excise policy of GNCTD of Delhi for the year 2021-22,” ED said in its request for sanction, according to an official.

ED said a special court had also taken cognizance of the prosecution complaint filed by it on July 9. It said the Supreme Court, in the case of ED vs Bibhu Prasad Acharya & Others, clarified that the provision of the Code of Criminal Procedure applied to Section 65 of the Prevention of Money Laundering Act and Section 71(1) “cannot override the provision of CrPC which applies to the PMLA vide its judgment dated 06.11.2024”, according to an official.

“In view of the facts and circumstances, sanction may be required for prosecution of Sh. Arvind Kejriwal, former CM, Govt. of NCT of Delhi, for the offense of money laundering under Section 4 of PMLA,” ED said in the request.

Under the rules, the Lt Governor can recommend to MHA or the Government of India, which are the competent authorities in such an instance, to grant sanction for the prosecution of the chief minister.