Make make AAP accused in Delhi excise case, ED tells SC

ED was appearing before an SC bench which was hearing a bail plea filed by Sisodia challenging his arrest in different cases

The Enforcement Directorate (ED) on Monday told the Supreme Court that the Aam Aadmi Party (AAP) could be named as an accused in connection with the Delhi excise scam in which two senior party functionaries – former Delhi deputy chief minister Manish Sisodia and Member of Parliament Sanjay Singh – are already under arrest.

The court pointed out certain “grey areas” in the probe by CBI and ED, as many of the charges levelled in the CBI case overlapped with that of ED’s. (HT Archive)

The federal agency was appearing before the bench of justices Sanjiv Khanna and SVN Bhatti which is hearing a bail plea filed by Sisodia challenging his arrest in separate cases being probed by the Central Bureau of Investigation (CBI) and ED in connection with the now-scrapped excise policy for 2021-22.

Additional solicitor general (ASG) SV Raju, appearing for both agencies, said, “We are contemplating on making AAP an accused invoking Section 70 of the Prevention of Money Laundering Act (PMLA) to probe it additionally for being vicariously liable. We have taken a decision in this regard.” Section 70 of PMLA deals with offences by a company, which includes a firm or an association of individuals.

The bench asked Raju, “Be careful in making your statement. Will it be a separate offence or the same offence in the ED case? You answer it tomorrow.” To this, Raju said that it has been decided that the charge may be different, but the offence would be the same. The court adjourned the matter to Tuesday.

On October 4, the bench, while hearing arguments on Sisodia’s bail, came across a chart presented by ED to explain how Sisodia and other accused in the case were paid alleged kickbacks worth ₹100 crore from a lobby of liquor traders from the south, known as the “South Group”. According to ED, the money trail showed AAP to be one of the beneficiaries.

The court then said that it needs clarity on this issue as far as the money laundering offence is concerned. “The petitioner (Sisodia) is named as one of the beneficiaries. Your whole case is that the political party is said to have benefitted from this. But they are not accused. How do you answer that?”

A day later, the bench clarified its query, and said, “The question we posed was not to implicate anybody as that was not our intention. When we were shown a chart by ED, there was the name (of the political party) given at the end... If under the PMLA, if A is a beneficiary who is not prosecuted, can B or C be prosecuted?”

ASG Raju told the court on Monday that the federal agency is pursuing two lines of investigation in the matter. “Our first case is that the petitioner (Sisodia) is directly linked with money laundering as he is the main player with Vijay Nair, AAP’s media in-charge. Our alternate case is that he was also involved vicariously. We are building that case under Section 70 of PMLA.” It is in this line of investigation, the ED seeks to rope in AAP.

Senior advocate Abhishek Manu Singhvi, appearing for Sisodia, along with advocate Vivek Jain, objected to an attempt being made to make another person an accused at the end of a year-long probe, five supplementary charge sheets, 500 witnesses and 50,000 documents and during bail arguments. Sisodia has maintained the CBI case against him lacks evidence, while in the ED case, there is nothing to link him with the alleged proceeds of crime.

Singhvi said, “On the last sentence made by him (ASG), you will see the effect in tomorrow’s newspapers.” The court assured Singhvi that it “will not affect our decision”.

The court pointed out certain “grey areas” in the probe by CBI and ED, as many of the charges levelled in the CBI case overlapped with that of ED’s. It also asked Singhvi to respond to the elaborate arguments by CBI and ED.

The court is likely to conclude arguments on Sisodia’s bail plea on Tuesday.

Sisodia was arrested in February by CBI and ED in March. He has denied all charges and the AAP has alleged the case reflects political vendetta.