Liquor Policy Scam| Delhi HC Asks ED to Produce Sanction for Prosecuting Kejriwal, Sisodia
The Delhi High Court on August 12, 2025, asked the Enforcement Directorate (ED) to place on record the mandatory sanction obtained by it to prosecute Aam Aadmi Party (AAP) leaders Arvind Kejriwal and Manish Sisodia in connection with the liquor excise policy scam case.
The AAP leaders approached the High Court, challenging the trial court’s decision to take cognizance of the ED chargesheet in the case, citing lack of mandatory prosecution sanction.
A bench led by Justice Ravinder Dudeja granted time to ED to place the document on record and listed the matter for hearing on November 12.
In its order, the court said, “It has come to the notice of the Court that the Enforcement Directorate has since obtained the sanction from the Lieutenant Governor of Delhi and placed the same on the record of the trial court. Learned ASG seeks permission to place this document on record by way of an affidavit. Let the same be placed on record".
Appearing for the AAP leaders, Senior Advocate Rebecca John at the outset said, “The ground on which I am challenging the proceedings is based on the lack of sanction to prosecute the public servant involved".
Additional Solicitor General SV Raju, appearing for the ED, stated that a sanction had been obtained and produced before the trial court.
Senior Advocate Rebecca John submitted, “Till 17 May 2024, six supplementary complaints were filed. Several accused persons were arrested, and these did not include me. Now, my Lordship, the ED filed a seventh complaint where I was named as an accused. On 19 July 2024, the trial court took cognisance and summoned the petitioner".
She referred to the ED’s reply filed on the plea moved by the AAP leader and pointed out that the ED had referred to a CBI sanction dated August 14, 2024, saying it was broad enough to subsume the proceedings under the PMLA.
Opposing the plea, Special Counsel Zoheb Hossain, on behalf of the ED, said that it had obtained a sanction from the Lieutenant Governor of Delhi and also sought to place the same on record, which was allowed by the court.
On July 9, the Delhi High Court asked the Enforcement Directorate to respond to Arvind Kejriwal's plea assailing the trial court order upholding the summons issued in the money laundering case related to the now-defunct liquor excise policy.
In November 2024, the High Court had issued notice to the Enforcement Directorate in a petition filed by Arvind Kejriwal challenging the summons issued to him on ED’s complaints in the money laundering case.
The CBI registered a case in August 2022 for alleged corruption in the formulation of the Delhi Excise Policy. The ED initiated a parallel investigation under PMLA, issuing several summonses to Kejriwal between October 2023 and February 2024. Kejriwal submitted written responses but did not appear in person, leading to the filing of the complaint cases.
Notably, the CBI is probing the alleged irregularities in the formulation of the now-defunct excise policy. On the other hand, the ED is investigating the money laundering aspect arising from it.
The Delhi liquor policy was introduced in November 2021 and rolled back by September 2022 after allegations of corruption.
Several senior AAP leaders, including Delhi Chief Minister Arvind Kejriwal, former Deputy CM Manish Sisodia, and Rajya Sabha MP Sanjay Singh, are named in the ongoing investigation into the alleged scam.
Case Title: Arvind Kejriwal vs Enforcement Directorate
Hearing Date: August 12, 2025
Bench: Justice Ravinder Dudeja