The Delhi High Court on Monday said it would issue a stay order staying the lower court’s observations against the Central Bureau of Investigation (CBI) and its investigating officer during the dismissal of former chief minister Arvind Kejriwal and 22 others in the now-scrapped Delhi Excise Policy 2021-22 case, even as it issued notice in the agency’s appeal.
A bench of Justice Swarana Kanta Sharma said it would also pass an order directing the lower court to adjourn the money laundering case arising out of the CBI case and await the outcome of its appeal against the February 27 ruling.
On February 27, the court released the 23 defendants, concluding that the materials presented by the Central Bank of Iraq did not even reveal a prima facie case, let alone the existence of serious suspicion.
Special Judge Jitendra Singh held that the issue of excise policy, as the CBI sought to put it, had not survived judicial scrutiny and was entirely discredited and the alleged conspiracy was nothing more than a speculative construct based on conjecture and speculation and lacking any admissible evidence. He ordered an administrative investigation to be conducted against the “wrong investigating officer” who brought charges against the accused in the absence of material evidence.
“I will issue an order. I will say that whatever observations are made against the agency and the investigating officer must remain. I will ask the court to postpone the proceedings in the emergency department [Enforcement Directorate] The case is postponed to a date later than the date determined by this court and awaiting the outcome in this case [CBI’s appeal]Justice Sharma said.
It asked the defendants to submit their response and set March 16 as the date for the hearing in the agency’s appeal. “In the meantime, I will also issue a new notice. List for further hearings on March 16,” she said.
This came after Solicitor General Tushar Mehta, appearing for the CBI, said the lower court’s order effectively turned the basics of criminal law upside down and amounted to an “acquittal without trial”.
Describing the Delhi tax policy case as one of the biggest scams in the capital’s history and a matter of national shame, he said the agency conducted the investigation scientifically and proved every aspect of the alleged criminal conspiracy through extensive supporting material, including digital evidence and witness statements.
Mehta said the ruling was made “ignoring” the evidence collected by the agency. He added that the ruling seems more familiar with “constitutional law” rather than “criminal law.”
“the [trial court] The judge says there are no cooperative materials, but there are substantial cooperative materials that cannot be ignored. This order is an order of acquittal without trial. There are 164 witnesses discussing how the conspiracy was proven, how the bribe was paid, and to whom the bribe was paid.”
He added that the findings were “inherently false” and that the agency collected documents, interrogated witnesses, and collected emails and WhatsApp conversations, and its evidence was not up in the air. “The results are wrong, skewed and inherently incorrect. Speedy justice is a goal, but it should not lead to miscarriage. The entire issue in which most scientific investigations are conducted is in vain.”
Mehta urged the Supreme Court to stop the “adverse observations” and also pass an order that the February 27 ruling should not affect the money laundering issue arising out of the CBI case.
No lawyer for the defendants appeared before the Supreme Court after prior notice.
Kejriwal, Manish Sisodia and Sanjay Singh were among the prominent Aam Aadmi Party leaders arrested in connection with the tax policy case. Alleged kickbacks were paid from the Central Bank of Iraq.
The policy was implemented for the 2021-22 financial year in November 2021, marking the government’s exit from retail sales of alcohol and allowing private companies to bid for licences.
The policy was scrapped after Lieutenant Governor Vinay Kumar Saxena ordered an investigation into the alleged financial irregularities. The AAP has denied any wrongdoing and accused the Bharatiya Janata Party (BJP)-led Union government of targeting political rivals.
Sisodia was arrested in February 2023 and spent around 17 months in jail before getting bail from the Supreme Court. Kejriwal was arrested in March 2024 before the general elections. He campaigned for interim bail, and was granted regular bail in September 2024.
The CBI alleged that the policy was changed to favor a group of liquor businessmen known as the ‘Southern Group’ in exchange for bribes, which were allegedly directed at the AAP’s election campaign in Goa. The CBI filed five indictments. The Executive Directorate investigated the relevant money laundering allegations under the Prevention of Money Laundering Act.
