Delhi HC Stays Arvind Kejriwal’s Bail Order in Excise Policy PMLA Case

Directorate of Enforcement Vs Arvind Kejriwal (Delhi High Court)

Summary: The Delhi High Court, in Directorate of Enforcement Vs Arvind Kejriwal, allowed the Enforcement Directorate’s application seeking a stay of the regular bail order granted to Arvind Kejriwal by the Vacation Judge of the Rouse Avenue Courts on 20 June 2024. Justice Sudhir Kumar Jain, by order dated 25 June 2024, held that the trial court had not adequately examined the material placed on record, had failed to appropriately consider the Enforcement Directorate’s submissions and had not demonstrated sufficient compliance with the requirements of Section 45 of the Prevention of Money Laundering Act, 2002. The Court consequently stayed the operation of the bail order. Significantly, it confined its ruling to the interim stay application and expressly reserved the merits of ED’s principal petition seeking to set aside the bail order under Section 439(2) read with Section 482 of the Code of Criminal Procedure, 1973.

The proceedings arose from allegations concerning irregularities in the formulation and implementation of the Government of NCT of Delhi’s Excise Policy for 2021–22. The Central Bureau of Investigation registered an FIR on 17 August 2022 against Manish Sisodia and others under the Indian Penal Code and the Prevention of Corruption Act, 1988. The Directorate of Enforcement registered its Enforcement Case Information Report on 22 August 2022 and investigated alleged proceeds of crime. ED arrested Arvind Kejriwal on 21 March 2024 under Section 19 PMLA. His challenge to the arrest and remand was dismissed by a coordinate Bench of the Delhi High Court on 9 April 2024, and the matter was taken to the Supreme Court. The Supreme Court granted him temporary interim bail for election campaigning from 10 May to 1 June 2024, without finally deciding the legality of the arrest at that stage.