Delhi Court Pulls Up CBI For 'Conjectural' Conspiracy Theory in Excise Policy Case; CBI to Move High Court

New Delhi: In a major setback to the probe conducted by the Central Bureau of Investigation, a Special Court at the Rouse Avenue Court on Friday discharged all 23 accused in the Delhi Excise Policy case, including former Chief Minister Arvind Kejriwal and former Deputy CM Manish Sisodia, ruling that the prosecution failed to establish any prima facie case or criminal conspiracy.

The order was pronounced by Special Judge (PC Act) Jitender Singh of the Rouse Avenue Court. The Court ruled that there was no overarching conspiracy or criminal intent in the formulation of the excise policy and held that the prosecution's case did not withstand judicial scrutiny. The court said the “voluminous chargesheet” contained multiple lacunae and was unsupported by reliable witness testimony or documentary proof.

Court’s Strong Observations

According to the Court, the CBI attempted to construct a narrative of conspiracy, but its theory was based on mere conjecture rather than concrete evidence. The judge concluded that no prima facie case was made out against any of the 23 accused persons and ordered their discharge.

In sharp remarks, the court said several accused were implicated without cogent material and that contradictions within the chargesheet struck at the very root of the conspiracy theory. It stressed that allowing investigative agencies to rely on approver statements merely to fill evidentiary gaps would violate constitutional principles.

The Court also strongly criticised the investigative approach adopted by the agency, particularly its reliance on approver statements. It observed that granting a pardon to an accused, turning him into an approver, and then using his statements to fill gaps in the investigation or rope in additional accused was improper. The judge warned that permitting such conduct would amount to a grave violation of constitutional principles.

Regarding Kejriwal, the court noted that attributing conspiracy to a constitutional functionary without fundamental material, statements, or evidence could not be sustained in law. On Sisodia-accused of playing a key role in policy formulation and implementation-the judge said there was no evidence linking him to wrongdoing and no recovery supporting allegations.

In a significant remark, the Court stated that it would recommend a departmental inquiry against CBI officials for making a public servant, Kuldeep Singh, the accused number one without adequate basis.

Case Background

The case stemmed from allegations of corruption in the now-scrapped Delhi Excise Policy 2021-22 introduced by the Aam Aadmi Party (AAP) government. The CBI had alleged that the policy was designed to favour select private entities by reducing license fees and fixing profit margins, leading to kickbacks and financial losses to the Delhi government.

The FIR was registered by the CBI in August 2022 following a complaint by Delhi Lieutenant Governor V.K. Saxena. The agency had claimed that a criminal conspiracy was hatched at the stage of policy formulation, with alleged loopholes intentionally created to benefit certain liquor licensees after the tender process.

Sisodia spent about 530 days in jail during the investigation, while Kejriwal spent roughly 156 days in custody across two separate periods. With Friday's order, the Special Court has effectively brought the CBI's case to a close at the trial court stage, holding that the allegations did not meet the threshold required for framing charges. 

CBI to Move HC

Soon after the order, officials indicated that the CBI would challenge the discharge before the Delhi High Court. Sources in the Enforcement Directorate said they are assessing the impact of the ruling on their parallel money-laundering probe linked to the same policy.

With the trial court concluding that the allegations failed to meet the threshold for framing charges, the decision effectively halts proceedings in the CBI case for now, pending any appellate challenge. With Agency Inputs.

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