New Delhi

In a significant development in the Delhi Excise Policy case, the Central Bureau of Investigation (CBI) has approached the Delhi High Court challenging a trial court order that discharged all 23 accused, including former Delhi Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia.

Confirming the move, the agency’s legal team said the CBI has formally sought setting aside of the discharge order.

Earlier in the day, a Special Court in the national capital discharged all accused in the case linked to the now-scrapped Delhi Excise Policy 2021–22. The order was pronounced by Special Judge (PC Act) Jitender Singh of the Rouse Avenue Court.

Trial court findings

The Special Court held that there was no overarching conspiracy or criminal intent in the formulation of the excise policy and ruled that the prosecution’s case did not withstand judicial scrutiny. The judge observed that while the CBI attempted to build a narrative of criminal conspiracy, its theory was based on conjectures rather than concrete and admissible evidence.

The court found that no prima facie case was made out against any of the 23 accused and accordingly ordered their discharge.

It also criticised the investigative approach adopted by the agency, particularly its reliance on the statement of an approver. The court observed that granting pardon to an accused, turning him into an approver, and then using his statements to fill gaps in the prosecution’s case or implicate additional individuals was improper and cautioned that such a course could violate constitutional safeguards.

In a notable observation, the court said it would recommend a departmental inquiry against CBI officials for making public servant Kuldeep Singh the number one accused in the case.

Background of the case

The case originated from allegations of corruption in the Delhi Excise Policy 2021–22 introduced by the Aam Aadmi Party (AAP) government. The CBI had alleged that the policy was framed to benefit certain private liquor licensees by reducing licence fees and fixing profit margins, resulting in alleged kickbacks and financial loss to the Delhi government.

The FIR was registered in August 2022 following a complaint by Delhi Lieutenant Governor V K Saxena. According to the agency, a criminal conspiracy was allegedly hatched during the policy formulation stage, with deliberate loopholes introduced to favour select entities after the tender process.

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With the Special Court’s order, proceedings at the trial court level have concluded for now. The validity of the discharge order will now be examined by the Delhi High Court following the CBI’s appeal, keeping the legal battle alive.