Aam Aadmi Party May Face Accusations In Delhi Excise Scam, Supreme Court Raises Concerns

The Enforcement Directorate (ED) informed the Supreme Court on Monday that it is considering naming the Aam Aadmi Party (AAP) as an accused in connection with the Delhi excise scam. This scandal involves the arrest of two senior AAP officials, former Delhi deputy chief minister Manish Sisodia and Member of Parliament Sanjay Singh.

The court raised concerns about certain "grey areas" in the investigations conducted by the Central Bureau of Investigation (CBI) and the ED. It observed that many of the charges in the CBI case overlapped with those in the ED's case.

The ED appeared before a bench of justices Sanjiv Khanna and SVN Bhatti, which is currently hearing Sisodia's bail plea challenging his arrest in separate cases related to the now-defunct excise policy for 2021-22.

Additional solicitor general (ASG) SV Raju, representing both agencies, stated that they are contemplating invoking Section 70 of the Prevention of Money Laundering Act (PMLA) to investigate the AAP as a vicariously liable entity. Section 70 of the PMLA deals with offenses by a company, which can include a firm or an association of individuals.

The bench inquired whether this would constitute a separate offense or be related to the same offense in the ED's case. Raju indicated that the charges might be different, but the offense would be the same. The court adjourned the matter to the following day for further clarification.

On October 4, while discussing Sisodia's bail, the court was presented with a chart by the ED, showing how Sisodia and other accused allegedly received kickbacks totaling ₹100 crore from a group of liquor traders known as the "South Group." The ED claimed that the money trail implicated the AAP as one of the beneficiaries. The court sought clarity regarding the money laundering offense and questioned why the political party was not named as an accused if it had benefited from these transactions.

ASG Raju mentioned on Monday that the ED is pursuing two lines of investigation. The first line asserts that Sisodia is directly linked to money laundering, while the alternate case suggests his vicarious involvement. The ED aims to build this case under Section 70 of the PMLA, which may involve the AAP.

Senior advocate Abhishek Manu Singhvi, representing Sisodia, objected to the attempt to implicate another person at the end of a year-long investigation, extensive charge sheets, numerous witnesses, and a large volume of documents during bail arguments. Sisodia maintains that there is a lack of evidence in the CBI case against him and no connection between him and the alleged proceeds of crime in the ED's case.

The court highlighted the overlap in charges between the CBI and ED cases and asked Singhvi to respond to the arguments put forth by both agencies. The court is expected to conclude the arguments on Sisodia's bail plea on the following day.

Sisodia was arrested by the CBI in February and by the ED in March. He has consistently denied all charges, and the AAP has alleged that the case is politically motivated.