Arvind Kejriwal Is Kingpin And Key Conspirator In Excise Scam, Did Large Scale Destruction Of Evidence: ED Tells Supreme Court

The ED has alleged that Arvind Kejriwal is the kingpin and key conspirator in the Delhi Liquor Policy Excise Scam, responsible for the mass destruction of evidence and the main facilitator of the new policy for the bribe givers.

The ED stated in its Affidavit that there are reasons to believe based on material in possession that Kejriwal is guilty of the offence of Money Laundering. It stated, “Sh Arvind Kejriwal, Chief Minister of NCT of Delhi is the kingpin and key conspirator of the Delhi Excise Scam in collusion with Ministers of Delhi Govt, AAP leaders and other persons. Sh Arvind Kejriwal was involved in the conspiracy of formulation of the Excise policy 2021-22 to favour certain persons and also involved in the demanding kickbacks from liquor businessmen in exchange of favours granting in the said policy. Further, Sh Arvind Kejriwal is involved in the use of proceeds of crime thus generated in the Goa election campaign of the AAP to which he is the Convenor and the ultimate decision maker.”

Further, the ED also alleged that large-scale destruction of evidence was done to make the investigation arduous. The Affidavit stated, “The investigation of this Liquor Scam has to be seen the background of large-scale destruction of evidence. A total of over 170 approx Mobile phones were changed/destroyed by 36 persons (accused and other persons involved) during the period of Scam and when the Scam and irregularities in the Delhi Excise Policy of 2021-22 became public. In this manner, the crucial digital evidences of the Scam and money trail have been actively destroyed by the accused and other persons involved in this scam. Despite such active and criminal destruction of evidence, the agency has been able to recover key evidences which directly reveals the role of the petitioner in process and activities relating to proceeds of crime…This conclusion of destruction of mobile phones is based on the fact that these mobile phones were not recovered during intensive searches conducted by ED and then on examination of these persons they were unable to produce them or produced them in completely or significantly formatted state.”

The ED in its reply said, “Under the old excise policy no wholesaler had an incentive to give a bribe to the Aam Aadmi Party ("AAP"), the old policy therefore required a change to facilitate the reimbursement of the wholesale license holder for the bribe taken form the wholesaler… For making such changes, a new policy was required to be formulated, he therefore was instrumental in formulating such a new policy which inter alia allowed a 12% margin to a wholesaler. This exorbitant margin of 12% was to compensate the bribe givers. The entire process of changing the policy smacks of mala fides and reveals an orchestrated way of achieving the conspiracy.”

The ED also made a comparative table to demonstrate the changes made that were allegedly arbitrary and irrational, made only to ensure large-scale profits to the bribe givers. It was also stated by the ED that Arvind Kejriwal was asked to provide the password to his mobile phones again and again, but he refused to share the same and even his statements during custody would reveal that despite being confronted with materials, the petitioner chose to give completely evasive answers.

The Supreme Court had issued the notice in the Special Leave Petition filed by Delhi CM Arvind Kejriwal challenging the Delhi High Court's Judgment upholding his arrest in a money laundering case stemming from the Delhi excise policy scam.

On April 10, Senior Advocate Abhishek Manu Singhvi had mentioned seeking urgent listing and hearing of the Petition. While mentioning, Singhvi had told the Apex Court that the High Court's Judgment was passed based on unrelied documents that were suppressed from them.

On April 1, Kejriwal was granted judicial custody till April 15, which was extended till April 23 and then now extended till May 7, 2024.

It is also to be noted that on March 27, the High Court had refused to grant any interim relief to the Chief Minister of Delhi. The Court had directed ED to file its reply in the interim Application as well as the main Writ Petition by April 2 and had clarified that no adjournment shall be granted on the date of the final hearing, i.e., April 3.

On March 28, the CM had made submissions in Hindi after obtaining permission from the Trial Court despite his Lawyers being present. Kejriwal had said a smokescreen of the AAP being corrupt had been created before the nation, and he had added that he is ready to face the ED probe. The submissions were made when the CM was produced on the expiration of his ED remand.

The AAP had first moved the Apex Court on March 21, 2024, late in the evening after the ED arrested Kejriwal. The agency took him to its headquarters in Central Delhi. The Delhi CM's legal team had attempted to get a late-night hearing from the Supreme Court. However, no special Supreme Court Bench was set up on Thursday night to hear the CM's plea challenging his Arrest. The Arrest of the first sitting Chief Minister came hours after the Delhi High Court had refused to grant protection to the AAP national convenor from any coercive action by the agency.

Cause Title: Arvind Kejriwal v. Directorate of Enforcement [SLP (Crl) No. 5154/2024]