Delhi CM Arvind Kejriwal gets bail relief in ED excise policy case

A Delhi court on Thursday granted regular bail to chief minister Arvind Kejriwal nearly three months after he was arrested on corruption charges in the excise policy case, in a ruling that buoyed the beleaguered Aam Aadmi Party (AAP) and potentially set off a new churn in city and national politics.

The decision by Rouse Avenue court vacation judge Niyay Bindu in the money laundering case registered by the Enforcement Directorate (ED) also marks a blow to the federal agency’s case, potentially altering the landscape of the ongoing legal battle.

Delhi CM Arvind Kejriwal granted bail in excise policy case

“The accused is admitted to bail in the sum of ₹1 lakh,” the judge announced while pronouncing the verdict on Thursday evening and said the detailed order will be released on Friday morning.

The judge rejected ED’s request to delay the acceptance of the bail bonds by 48 hours to allow the agency time to challenge the order in a higher court, clarifying that Kejriwal’s counsel can apply for bail bond on Friday before the concerned judge. “There is no stay on the order of granting bail,” the judge added.

To be sure, the agency is expected to rush to the Delhi high court on Friday, seeking a stay on the bail order before a vacation bench. According to people aware of the matter, Kejriwal’s legal team has also filed a caveat in the high court to ensure no order is passed without hearing them.

As things stand, Kejriwal may walk out of jail on Friday.

“Satyamev Jayate [Truth alone triumphs],” Delhi minister Atishi posted on X.

This decision was crucial for Kejriwal, who surged to power a decade ago after platforming himself as an anti-corruption crusader and shook up the Capital’s entrenched political structures before finding himself embroiled in graft charges and his party in serious trouble.

Kejriwal has been in custody since March 21 following his arrest by ED, apart from a 21-day interim bail in May for Lok Sabha election campaigning. The release came days after the general elections threw up surprisingly positive results for the Opposition but found the AAP winning no seat in Delhi and only three in Punjab, a state where it swept to power in a landslide two years ago.

The bail also marks a setback for ED, as it means Kejriwal could successfully counter the accusations and challenge the existence of a prima facie case and evidence of guilt, prerequisites under Section 45 of the Prevention of Money Laundering Act (PMLA). The provision requires the trial court to be convinced that there are reasonable grounds to believe the accused is not guilty and is not likely to commit any offence while on bail.

The bail comes at a critical juncture when the Supreme Court has reserved its verdict on Kejriwal’s petition challenging his arrest by ED.

AAP national spokesperson Priyanka Kakkar termed the decision “historic”.

“...This case is completely fake; the whole case has been written in the BJP office. We are very grateful to the court or giving a historic verdict. Regular bail in a PMLA case is nothing less than an acquittal...,” said Kakkar.

The BJP said his bail was just a regular part of the process.

Kejriwal’s arrest was part of the Opposition’s agenda in the general elections campaign and his bail was welcomed by several leaders.

His arrest was also considered a moment of reckoning for the AAP, which will vie for a third consecutive term in Delhi in the assembly polls scheduled in eight months. If released, Kejriwal – the face of the party and its tallest leader – will boost the party’s campaign.

The case against Kejriwal stems from allegations of irregularities in Delhi’s excise policy, which the Central Bureau of Investigation (CBI) began probing following a recommendation by Delhi’s LG in July 2022. Kejriwal was the third AAP leader arrested in this connection. Sisodia has been in jail since February 2023, and Rajya Sabha MP Sanjay Singh was granted bail by the top court in April this year after six months of custody.

ED, in its submissions before all courts, has accused the CM of being the “kingpin” and “key conspirator” of the alleged corruption in the 2021-22 Delhi excise policy, adding he acted in cahoots with ministers of his cabinet and other AAP leaders for seeking benefit from some businessmen involved in the liquor business. The AAP chief has denied all allegations and called them politically motivated.

Kejriwal approached the city court two days before his interim bail ended. He was arrested on March 21 for alleged irregularities in the Delhi excise policy for 2021-22 and was granted interim bail by the Supreme Court on May 10 to campaign for the Lok Sabha elections. He surrendered on June 2 after the Supreme Court declined to extend the interim bail.

Before the trial court, ED opposed Kejriwal’s application, raising concerns about the potential destruction of crucial evidence. In a 182-page reply, the agency argued that Kejriwal’s influential status could enable him to tamper with evidence and influence witnesses.

During the bail hearing, Kejriwal’s defence, led by senior advocate Vikram Chaudhari, argued that ED failed to prove a money trail linked to Kejriwal or substantiate claims of AAP leaders receiving kickbacks through the policy. Chaudhary emphasised that the case was based on statements from “tainted co-accused” who had been granted bail or pardon, highlighting contradictions and a lack of material corroboration in these statements.

The CM’s lawyer also pointed out that Kejriwal was not made an accused in the Central Bureau of Investigation case and was called as a witness instead. They asserted that ED lacked evidence to prove AAP received ₹45 crore as kickbacks and that Kejriwal had connections with individuals who allegedly managed the funds. Chaudhari further contended that the apex court permitted Kejriwal to apply for regular bail while reserving judgment on his plea on May 17.

Opposing the bail, additional solicitor general (ASG) SV Raju, representing ED, argued that there was undeniable evidence of money laundering. Raju stated that ED had concrete proof of Kejriwal’s involvement, including telephone call records and call data records (CDR) showing co-accused Chanpreet Singh’s receipt of ₹45 crore as kickbacks. Citing the rigours of Section 45 of the PMLA, the law officer also argued it was Kejriwal’s responsibility to demonstrate that he was not guilty of a PMLA offence, regardless of his constitutional post.

Arvind Kejriwal bail: AAP says ‘Satyamev Jayate’ on court order, BJP hits back

On Wednesday, the court extended Kejriwal’s judicial custody till July 3 after he was produced from Tihar jail via virtual mode.

On June 5, Kejriwal’s plea for interim bail on medical grounds was dismissed by another trial court, citing his active involvement in election campaigning as evidence that he does not suffer from any serious or life-threatening ailments. To address Kejriwal’s health concerns, the court, however, ordered the revival of the AIIMS medical board constituted earlier to examine him and conduct necessary medical tests for prescribing any required treatment.

Last month, ED filed a supplementary charge sheet in the money laundering case, naming Kejriwal and the AAP as accused. The court has reserved its order on cognisance of the seventh supplementary charge sheet filed by the agency.