CBI Court discharges liquor scam accused

Congress maintains silence

Telangana Congress leaders maintained silence on the judgment. None of the senior leaders in the government or the party issued any statement or reaction on the development. Typically, Congress leaders are quick to respond to major political developments, particularly when they concern leaders from rival parties. However, in this instance, there was a conspicuous absence. When contacted, a Congress legislator said there were no directions from the party leadership to respond to the verdict, which explained the collective silence.

In a significant twist to the high-profile Delhi excise policy case, the Rouse Avenue Court on Friday delivered a clean chit to former Delhi Chief Minister Arvind Kejriwal, former Deputy Chief Minister Manish Sisodia, Telangana Jagruthi leader and ex-MLC Kalvakuntla Kavitha, and 20 others, clearing them of all allegations in the long-running corruption probe.

The court dismissed all charges filed by the Central Bureau of Investigation (CBI), citing a complete lack of evidence, internal contradictions in the chargesheet, and failure to establish any criminal conspiracy. Special Judge Jitender Singh lambasted the CBI for its shoddy investigation, noting that the prosecution's narrative was riddled with lacunae and unsupported by witness statements or concrete proof. The judge also criticized the agency's use of terms like "South Group" to label accused from southern India, drawing parallels to discriminatory practices and questioning the absence of similar descriptors for others.

The case, which has dragged on since 2022, involved allegations that the Aam Aadmi Party (AAP) government's excise policy for 2021-22 was manipulated to favor private liquor entities in exchange for kickbacks worth Rs 100 crore. Kavitha, daughter of former Telangana CM K Chandrashekar Rao, was accused of being part of this "South Group" that allegedly funneled bribes to AAP leaders for undue favors, including liquor licenses and profit margins. Arrested by the Enforcement Directorate (ED) on March 15, 2024, at her Hyderabad residence, she spent over five months in Tihar Jail before securing bail. The verdict marks a significant setback for the CBI and ED, with the court ordering an internal inquiry into the investigating officer.

Reacting to the acquittal, Kavitha hailed it as a triumph of truth, posting "Satyameva Jayate" on X and describing the case as a "politically motivated vendetta" aimed at opposition parties. She expressed gratitude to the judiciary for "cutting through the web of lies" and questioned accountability for her wrongful imprisonment.

For Kejriwal and Sisodia, the clean chit provides major relief after prolonged legal battles, including arrests in related ED cases. Kejriwal, arrested by the ED on March 21, 2024, and by CBI on June 26, 2024, reportedly broke down in tears upon hearing the verdict, consoled by Sisodia. The court's order emphasized no prima facie case against them, underscoring the absence of overarching conspiracy or criminal intent. This development could reshape political narratives, especially for AAP, which faced electoral repercussions from the scandal. The CBI had filed its first chargesheet in 2022, followed by supplements, but the prosecution collapsed under judicial scrutiny. While CBI cases are quashed, related ED proceedings remain ongoing, though experts predict similar outcomes.

Case Backgrounder

The Delhi Excise Policy 2021-22 was introduced by the AAP government on November 17, 2021, aiming to revolutionize liquor retail by privatizing sales, increasing wholesaler commissions from 5% to 12%, and boosting state revenue to Rs 9,500 crore. It divided Delhi into 32 zones with 849 retail outlets, projecting modernization and curbing black marketing. However, allegations surfaced of procedural lapses, favoritism, and corruption.

In July 2022, Delhi Chief Secretary Naresh Kumar's report to LG VK Saxena flagged "arbitrary decisions" by then-Excise Minister Manish Sisodia, causing over Rs 580 crore in losses to the exchequer. It accused AAP of receiving kickbacks from liquor operators for waivers on fees and penalties during Covid-19, allegedly funneled to fund elections in Punjab and Goa. The policy was scrapped on July 29, 2022, and LG recommended a CBI probe.

CBI registered an FIR on August 17, 2022, naming 15 accused, including Sisodia, for irregularities in policy formulation. Agencies alleged a "South Lobby" paid Rs 100 crore in bribes for undue benefits, like license extensions and profit margins. ED joined for money laundering, leading to arrests of key figures like Kejriwal, Sisodia, and Kavitha. The case expanded to 23 accused, but on February 27, 2026, the court acquitted all, deeming it unsubstantiated.