A Delhi court on Wednesday extended the judicial custody of Chief Minister Arvind Kejriwal until September 25 in a case filed by the Central Bureau of Investigation (CBI) over alleged irregularities in the formation and execution of the now-repealed 2021-22 Delhi excise policy.
Meanwhile, the Rouse Avenue court granted bail to Aam Aadmi Party (AAP) legislator Durgesh Pathak. Special judge Kaveri Baweja approved Pathak’s bail, who appeared in court in response to a summons issued on September 3, on a bond of ₹1 lakh.
Kejriwal participated in the hearing via video conference from Tihar Jail. He, along with Pathak and four others—Amit Arora, Vinod Chauhan, Ashish Mathur, and P Sarath Reddy—were named in the CBI’s fourth supplementary charge sheet submitted on July 30. However, aside from Kejriwal, the remaining five accused were not arrested despite being named in the charge sheet.
According to the CBI, Kejriwal is a key conspirator in the case and maintained contact with the “South Group,” which includes K Kavitha, Raghav Magunta, Arun Pillai, Butchibabu Gorantla, Reddy, Abhishek Boinpally, and Benoy Babu. The Delhi CM allegedly received kickbacks from this group in exchange for liquor licenses in Delhi, a portion of which was reportedly used to fund AAP’s campaign for the 2022 Goa Assembly elections.
The CBI also claims that Pathak oversaw election activities and directed the spending of the kickback funds. It stated that all election expenses were handled in cash, and Kejriwal allegedly promised ₹90 lakh to each candidate in Goa’s 40 constituencies.
Vijay Nair, AAP’s then media in-charge, was appointed by Kejriwal and, according to the CBI, held meetings and solicited bribes in return for favorable provisions in the excise policy. Magunta Sreenivasulu Reddy met Kejriwal in Delhi, allegedly requesting support for his liquor business, and Kejriwal is accused of asking for financial contributions to AAP during this meeting.
The CBI further alleged that Chauhan and Mathur were involved in transferring money, with Chauhan coordinating with K Kavitha’s assistant. Arora was reportedly pressuring Mahadev Liquors officials to shut down their operations in Delhi. Additionally, accused-turned-approver P Sarath Reddy is said to have given ₹14 crore to Kavitha under the guise of a land deal, securing five liquor outlets in Delhi as a result.
Kejriwal was initially arrested in another excise policy case by the Enforcement Directorate (ED) on March 21. He was later taken into CBI custody on June 26 and sent to judicial custody on June 29. Although the Supreme Court granted Kejriwal interim bail in the ED case on July 12, he remains in jail due to the ongoing CBI investigation.
The case revolves around the 2021-22 Delhi excise policy, which sought to overhaul the city’s liquor trade by shifting from a sales volume-based system to one focused on license fees for traders, offering modernized stores with better customer experiences. The policy also allowed discounts on liquor purchases, a first for Delhi. However, the policy was scrapped after Delhi’s Lieutenant Governor VK Saxena recommended an inquiry into alleged irregularities, leading to the reinstatement of the 2020-21 policy. The AAP contended that Saxena’s predecessor undermined the policy with last-minute changes that reduced anticipated revenue.
