Delhi Excise Policy Case: from the accusations to discharge of Kejriwal, Sisodia - Timeline of events

Observing that subjecting the accused to a full-fledged  criminal trial without legally admissible evidence would result in a “manifest miscarriage of justice,” the Special Judge at Rouse Avenue Court discharged all the accused in the Delhi excise policy case.

A Delhi court on Friday acquitted all 23 accused in the excise policy case, including Aam Aadmi Party (AAP) convenor Arvind Kejriwal and former Delhi Deputy Chief Minister Manish Sisodia. The case was being investigated by the Central Bureau of Investigation (CBI). The court held that the prosecution failed to establish even a prima facie case or raise any “grave suspicion” sufficient to warrant the framing of charges.

In a detailed order of over 1,100 paragraphs, Special Judge (Prevention of Corruption Act) Jitendra Singh of the Rouse Avenue Court, noted that the case projected by the CBI was "wholly unable to survive judicial scrutiny" and stood "discredited in its entirety".

Observing that subjecting the accused to a full-fledged  criminal trial without legally admissible evidence would result in a “manifest miscarriage of justice,” the Special Judge at Rouse Avenue Court discharged all the accused in the Delhi excise policy case.

The case linked to the Delhi Excise Policy 2021-22 introduced by the then AAP-led state government in November 2021 and later scrapped in 2022 facing allegations of corruption and kickbacks. 

What is the case against Kejriwal and AAP?

According to central investigative agencies, Kejriwal and other AAP leaders allegedly received bribes from the “South Group” cartel, which was purportedly given undue advantages under the 2021–22 excise policy.

The agencies claimed that the policy was structured to benefit select liquor licensees in return for alleged upfront payments that were allegedly channelled for electoral activities, including the 2022 Goa Assembly elections.

A Comptroller and Auditor General (CAG) report further stated that irregularities in the formulation and implementation of the policy led to an alleged loss of over Rs 2,026 crore.

The report said that taxpayers incurred an estimated loss of around Rs 890 crore due to the then AAP-led Delhi government’s decision not to re-tender surrendered retail liquor licences. It further attributed an additional loss of Rs 941 crore to exemptions granted to zonal licensees.

The audit also highlighted alleged shortcomings, including a lack of transparency in pricing mechanisms, irregularities in the issuance and renewal of licences, failure to take action against rule violators, and the absence of required approvals from Delhi’s Lieutenant Governor V.K. Saxena, the Cabinet, or the Legislative Assembly at crucial stages.

The Group of Ministers headed by Sisodia was alleged to have disregarded recommendations made by an expert panel and to have permitted entities that were reportedly disqualified to participate in the bidding process.

Kejriwal and Sisodia have repeatedly rejected the allegations, describing the case as “politically motivated” and accusing the Bharatiya Janata Party of misusing central investigative agencies.

After reviewing extensive records and examining nearly 300 prosecution witnesses, the trial court held that the “theory of an overarching conspiracy” had been “completely dismantled,” observing that the prosecution failed to present sufficient material even at the initial stage.

Subsequently, the CBI approached the Delhi High Court challenging the trial court’s discharge order, arguing that several aspects of the investigation were either overlooked or inadequately assessed by the lower court.

Below is a detailed timeline of the excise policy case and the ensuing legal proceedings involving Arvind Kejriwal and Manish Sisodia: On February 26, 2023, Manish Sisodia was arrested by the CBI in connection with the Delhi excise policy case, nearly six months after he and 14 others were named in an FIR registered by the central agency in August 2022.

March 9, 2023: The Enforcement Directorate (ED) arrested Sisodia while he was already in judicial custody following his earlier arrest by the CBI.

March 21, 2024: The ED arrested Arvind Kejriwal after the Delhi High Court declined to grant him protection from “coercive action.”

May 10, 2024: Considering the 2024 Lok Sabha elections, the Supreme Court granted Kejriwal interim bail in the money laundering case until June 1 and directed him to surrender on June 2.

June 26, 2024: The CBI formally arrested Kejriwal in the corruption case, subsequent to his earlier arrest by the ED.

July 12, 2024: The Supreme Court granted Kejriwal interim bail in the ED case and referred his plea challenging the arrest to a larger bench. However, he remained in custody due to the CBI case.

August 9, 2024: The Supreme Court granted bail to Sisodia in both the ED and CBI cases, observing that he could not be kept in jail indefinitely pending trial.

August 23, 2024: The CBI informed the Rouse Avenue Court that it had secured the necessary sanction under the Prevention of Corruption Act to prosecute Kejriwal in the excise policy corruption case.

September 13, 2024: The Supreme Court granted bail to Kejriwal in the CBI corruption case but refused to quash his arrest, resulting in his release after several months in custody.

January 15, 2025: The Centre approved the ED’s request to prosecute Kejriwal and Sisodia under the Prevention of Money Laundering Act (PMLA), following a recommendation by Delhi Lieutenant Governor V.K. Saxena.

February 27, 2026: The Rouse Avenue Court discharged all 23 accused, including Kejriwal and Sisodia, ruling that the prosecution failed to establish even a prima facie case and that the underlying predicate offence did not stand.