Excise Policy Case: Delhi HC stays adverse remarks against CBI, defers PMLA proceedings

The Delhi High Court on Monday stayed the operation of adverse remarks made against the Central Bureau of Investigation (CBI) and its investigating officer in a trial court order that had discharged 23 accused in the Delhi Excise Policy case.

The High Court also directed the trial court to defer proceedings in the connected case under the Prevention of Money Laundering Act (PMLA) until further hearing of the appeal.

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Justice Swarna Kanta Sharma issued the directions while hearing an appeal filed by the CBI challenging the discharge order passed by a special court. The court also issued notice to the respondents as none appeared on behalf of the 23 respondents during the hearing, including senior leaders of the Aam Aadmi Party, such as former Delhi Chief Minister Arvind Kejriwal and former Deputy CM Manish Sisodia.

Appearing for the CBI, Solicitor General Tushar Mehta argued that the trial court had made strong and unwarranted observations against the investigating officer and the agency at the stage of discharge. Accepting the submission, the High Court stayed the operation of those remarks.

The court also directed that proceedings in the related money laundering case under the Prevention of Money Laundering Act be postponed by the trial court until the High Court hears the appeal further.

The appeal stems from a February 27 order by Special Judge Jitender Singh of the Rouse Avenue Court, who discharged all 23 accused in the case registered by the CBI in connection with the Delhi Excise Policy 2021-22.

In its order, the trial court held that no prima facie case was made out against the accused and observed that the prosecution’s allegations of criminal conspiracy did not withstand judicial scrutiny.

Challenging the ruling, the CBI argued before the High Court that the trial court misapplied established legal principles governing the stage of framing of charges. The agency contended that the court conducted a detailed evaluation of evidence, which is not permissible at the preliminary stage, and also erred in its interpretation of the law relating to approvers while disregarding material gathered during the investigation.

The case relates to allegations that the now-withdrawn Delhi Excise Policy for 2021-22 was framed to grant undue benefits to certain private licensees, leading to alleged kickbacks and financial losses to the Delhi government. Among those discharged by the trial court were former Chief Minister Kejriwal and former Deputy Chief Minister Sisodia.

(With inputs from ANI)