New Delhi: Ahead of the 2025 Delhi Assembly elections, Delhi Lieutenant Governor (LG) VK Saxena has given the Enforcement Directorate (ED) permission to prosecute AAP Chief and former Delhi Chief Minister Arvind Kejriwal in the excise policy case.

On the basis of an internal report by then chief secretary Naresh Kumar, the Saxena in July 2022 recommended a CBI inquiry into alleged procedural lapses and violations of rules and acts in the formulation and implementation of the Delhi Excise Policy 2021-22.

ED’s prosecution complaint alleged that Kejriwal conspired with member of the “South Group” to receive Rs 100 crore and passed on undue benefits to private entities by formulating and implementing a “tailor-made” liquor policy.

It added that stakes were ensured for the South Group in different liquor shops. It was also allowed to hold multiple retail zones against the objectives of the Excise Policy 2021-22.

In a related development, the Delhi High Court granted the ED more time to respond to a petition filed by Arvind Kejriwal and Manish Sisodia. The petition challenges the trial court’s decision to take cognizance of the chargesheets in the Delhi Excise Liquor Policy case.

The ED claims that the excise policy was intentionally structured with loopholes to benefit AAP leaders and facilitate cartel formations. The agency alleges that AAP leaders received kickbacks from liquor businesses in exchange for preferential treatment, including discounts, license fee waivers, and concessions during the Covid-19 disruptions.

Additionally, the ED accuses AAP leaders of awarding wholesale liquor distribution rights to private entities with a fixed 12% margin in return for a 6% kickback. 

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