In a significant development, Delhi Lieutenant Governor VK Saxena has granted approval to the Enforcement Directorate (ED) to prosecute former Chief Minister Arvind Kejriwal in the alleged money laundering case linked to the controversial excise policy scam. This comes as a major blow to the AAP chief ahead of the crucial Delhi state elections, following the party's setback in the recent Lok Sabha polls.

Case Background

The ED, probing charges under the Prevention of Money Laundering Act (PMLA), had earlier filed a case against Mr. Kejriwal but was awaiting LG’s sanction, which became mandatory after a Supreme Court directive for prosecuting individuals holding government posts in such cases.

The liquor policy scam has been a prominent allegation against the Kejriwal government by the opposition BJP. The ED alleges that modifications to the Excise Policy 2021-22 provided undue favors to liquor license holders, benefitting a "South lobby" in exchange for a ₹100 crore bribe. The investigation revealed that ₹45 crore of this amount was allegedly used for the AAP’s election campaign in Goa.

Arrest and Bail

Mr. Kejriwal was arrested on March 21 in connection with the case but was granted bail by the Supreme Court in September 2023. Following his release, Kejriwal resigned as Chief Minister, stating he would only return to the position if re-elected by the people in the 2025 state elections.

ED’s Chargesheet and Allegations

In its chargesheet, the ED named Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia as the masterminds behind the alleged scam. Mr. Sisodia, too, spent 18 months in jail before being granted bail in August 2023. The chargesheet claims irregularities in the excise policy benefitted private players and compromised public revenue. Both leaders have denied the allegations, accusing the BJP-led central government of using investigative agencies for political vendetta.

Legal Developments

The Delhi High Court has refused to stay trial court proceedings in the criminal case.

The court will hear the ED’s plea against the bail granted to Kejriwal on January 17, 2025.

Meanwhile, Mr. Kejriwal has appealed to the High Court to cancel the chargesheet, and the court has issued a notice to the ED.

Political Implications

Mr. Kejriwal’s prosecution poses a significant challenge for the AAP, especially with the Delhi elections around the corner. His arrest, allegations of financial mismanagement, and the party’s electoral performance in the Lok Sabha polls have put the AAP under immense pressure. The BJP continues to target AAP over the scam, further escalating tensions in Delhi's political landscape. How this case unfolds will likely impact the party’s image and electoral prospects in the upcoming state elections.