Arvind Kejriwal, Manish Sisodia Get Court Relief: Delhi Liquor Policy Case To CBI’s Plans Explained

Last Updated:February 27, 2026, 14:06 IST

Delhi liquor policy case: Besides Arvind Kejriwal and Manish Sisodia, 21 more, including BRS leader K Kavitha, were discharged in the case; all you need to know, explained

In major relief for Arvind Kejriwal and Manish Sisodia, Delhi’s Rouse Avenue Court on Friday discharged the former Delhi chief minister and his ex-deputy in the politically charged liquor policy case, as it refused to take cognisance of the Central Bureau of Investigation (CBI) charge sheet. Besides the two leaders, 21 more, including BRS leader K Kavitha, were discharged in the case.

The Central Bureau of Investigation (CBI), which has been probing alleged corruption in the formulation and execution of the erstwhile-AAP government’s now-scrapped excise policy, has said it will approach the Delhi High Court.

Arvind Kejriwal broke down in tears following the verdict, stating that “truth has won" and describing the case as a political conspiracy.

What the court said

Special Judge Jitendra Singh of the Rouse Avenue Court cleared all 23 accused, stating there was “no overarching conspiracy or criminal intent" in the policy.

No evidence: The judge rapped the federal agency for lapses in investigation, saying there was no cogent evidence against Kejriwal, while there was no prima facie case against Sisodia. The court found the CBI’s allegations to be based on conjecture rather than concrete proof and noted significant gaps in the investigation.

No criminal conspiracy: The order highlighted that the prosecution failed to show that there was any criminal conspiracy involving Kejriwal, Sisodia or others — a key element that needed to be established for the charges to stick.

Internal contradictions: The judge underlined “some misleading averments" and said that the voluminous chargesheet had several lacunas not corroborated by evidence or witnesses. “…The chargesheet suffers from internal contradictions, striking at the root of conspiracy theory," Judge Singh said. The judge criticised reliance on approver statements (testimony from an accused turned witness) to “fill gaps" in the CBI’s case, noting this should not substitute for substantive evidence.

He said that in the absence of any evidence, the allegations against Kejriwal could not be sustained and that the former chief minister was implicated without any cogent evidence. This, the judge said, was inconsistent with the rule of law. Regarding Sisodia, the judge said there was no material on record showing his involvement, nor was any recovery made from him.

The judge recommended a departmental inquiry against CBI officials for erroneously making a public servant (Kuldeep Singh) the primary accused.

The 23 who were discharged

Arvind Kejriwal, former Chief Minister of Delhi; Manish Sisodia, former Deputy Chief Minister of Delhi; K. Kavitha, Telangana MLC and BRS leader; Vijay Nair, Former AAP communications in-charge; Durgesh Pathak, AAP MLA; Kuldeep Singh, former Excise Commissioner; Narender Singh, Former Deputy Excise Commissioner; Abhishek Boinpally, businessman; Arun Ramchandra Pillai, businessman; Sameer Mahendru, Managing Director, Indospirit; Amandeep Singh Dhall, businessman, Brindco Sales; Mootha Goutam, Businessman; Arjun Pandey, alleged associate of Manish Sisodia; Butchibabu Gorantla, Chartered Accountant; Rajesh Joshi, usinessman, Chariot Productions; Damodar Prasad Sharma, liquor businessman; Prince Kumar, liquor businessman; Arvind Kumar Singh, employee of India Ahead News; Chanpreet Singh Rayat, alleged fund manager; Amit Arora, director, Buddy Retail; Vinod Chauhan, alleged middleman; Ashish Chand Mathur, businessman; P. Sarath Chandra Reddy, director, Aurobindo Pharma.

Arvind Kejriwal, Manish Sisodia react

“I am not corrupt. The court has said that Kejriwal and Manish Sisodia are honest. The BJP was making allegations against us, but the court acquitted everyone, truth has prevailed…We always said that the truth emerges victorious. We have full faith in the Indian legal system…The sitting Chief Minister was dragged out of his house and put in jail. Kejriwal is not corrupt. I have only earned honesty in my life," said Kejriwal.

Former Deputy Chief Minister Manish Sisodia also reacted to the verdict, saying the outcome strengthened faith in constitutional institutions. “We are proud of our Constitution," Sisodia said.

Meanwhile, Arvind Kejriwal’s wife, Sunita Kejriwal, took to X and wrote, “In this world, no matter how powerful one becomes, one cannot rise above Shiva Shakti. Truth always prevails."

Speaking to reporters, she said, “We faced a lot of problems, but God was with us. We are grateful to those who stood with us during such difficult times."

BJP reacts

BJP leader Sudhanshu Trivedi said, “The court has acquitted him due to lack of evidence. This is a technical issue. CBI will take the next step in this case. The party will give a structured response after studying the judgment in detail. One must think – if the charges were baseless, then how were the charges framed?"

Amit Malviya, BJP national IT chief, shared his views on X, saying, “The judgment in the Delhi excise case has come from a lower court. In the past, even the Delhi High Court and the Supreme Court of India have made strong and damning observations in related proceedings. Whether this judgment withstands scrutiny in higher courts remains to be seen. The legal process is far from over."

Malviya further added, “If Arvind Kejriwal was so honest, why did the Delhi government roll back and alter the policy once irregularities were flagged? Why were multiple phones and SIM cards destroyed? Why was the number of vendors reduced so sharply while commissions were increased from 6% to 12%? These decisions raise serious and legitimate questions. The kickbacks are not a figment of imagination; they are issues placed before the courts and the public."

He also criticised the former Delhi CM’s government policies, stating, “More importantly, Kejriwal’s ‘one on one free’ scheme harmed families across Delhi. His policies increased liquor prices and hurt households. He deserves the strictest punishment for running what was a morally bankrupt government. The people of Delhi have already expressed their verdict through the ballot. Now, the judiciary will continue its examination. With further levels of judicial scrutiny pending, the final word is yet to be written."

What was the Delhi liquor policy case?

The Delhi liquor policy case originated in 2022 following allegations of irregularities in the formulation and implementation of the 2021-22 excise policy. Introduced in November 2021, it sought to completely privatise the liquor trade in Delhi, increasing wholesaler commission from 5% to 12%. The CBI and Enforcement Directorate (ED) alleged the policy was designed to favour a “South Group" of private entities in exchange for ₹100 crore in kickbacks. The controversial policy was scrapped in September 2022, and Delhi reverted to the old regime where only government-run corporations operate retail outlets.

The timeline of the Delhi liquor policy case

November 17, 2021: The then Delhi government under the Aam Aadmi Party (AAP) led by Arvind Kejriwal implements a new excise (liquor) policy for 2021–22 aimed at reforming liquor distribution and retail, including greater private participation.

July 8, 2022: Delhi Chief Secretary submits a report alleging irregularities in the excise policy.

July 22, 2022: Lieutenant Governor recommends a Central Bureau of Investigation (CBI) probe into alleged procedural violations.

August 19, 2022: CBI raids the residence of then Deputy CM Manish Sisodia and others in connection with the policy.

August 22, 2022: The Enforcement Directorate (ED) registers a separate money-laundering case linked to the policy.

September 1, 2022: The Delhi government withdraws the new 2021–22 excise policy and reverts to the previous system.

September–November 2022: CBI and ED conduct raids at multiple locations, question several people connected with liquor businesses, and lay charges against some accused.

February 2023: CBI arrests Manish Sisodia in connection with the case.

October 2023–January 2024: ED issues several summons to Arvind Kejriwal; he repeatedly skips them.

March 21, 2024: Arvind Kejriwal is arrested by the Enforcement Directorate in connection with the liquor policy money-laundering case after failing to appear for multiple summons — making him the first sitting chief minister in India to be arrested in such a case.

May–June 2024: Supreme Court grants interim bail to Kejriwal to contest the 2024 Lok Sabha elections, and he later surrenders at Tihar jail; subsequent trial court bail and High Court stay occur, and then CBI remands him again in June.

2025: The case continues alongside political changes in Delhi, including a new government taking office in February 2025 and repeated delays in rolling out a new excise policy because of the investigations and legal proceedings.

With Agency Inputs

News explainers Arvind Kejriwal, Manish Sisodia Get Court Relief: Delhi Liquor Policy Case To CBI’s Plans Explained

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