ED Calls Delhi Excise Case 'Standalone', Stands By Money Laundering Probe After Kejriwal’s Discharge

The Enforcement Directorate on Friday asserted that its probe into the Delhi excise policy-linked money laundering case is a “standalone” investigation backed by credible evidence and independent testimonies, even as a trial court discharged former Delhi Chief Minister Arvind Kejriwal, Manish Sisodia and others in the related CBI case.

ED Calls Probe Independent

Officials said the agency’s August 22, 2022 case stems from a CBI FIR registered on August 17, 2022, over alleged irregularities in the Delhi government’s 2021-22 excise policy. However, they stressed that the money laundering investigation is distinct and supported by material different from that cited by the CBI.

The ED, which functions under the Prevention of Money Laundering Act, cannot register a criminal case on its own and must rely on a predicate offence filed by another agency.

Legal Position Under Supreme Court Ruling

As per the Supreme Court of India judgment in the Vijay Madanlal case (2022), if an accused is acquitted in the scheduled offence, the money laundering charge may not survive.

However, ED officials maintain that money laundering should be treated as a separate offence, irrespective of the outcome of the primary case. They added that the apex court is currently examining whether such cases should remain linked to predicate offences.

Chargesheets And Arrests

The agency has filed eight chargesheets naming 40 entities and arrested 18 individuals, including Kejriwal and Sisodia. In its filings, the ED termed Kejriwal the “kingpin and key conspirator” in the alleged excise policy scam.

Reacting to the discharge order, Kejriwal described the case as the “biggest political conspiracy” in Independent India.