Breaking: Manish Sisodia Remanded To ED Custody Till March 17 In Delhi Liquor Policy Money Laundering Case

A Delhi Court on Friday remanded Aam Aadmi Party (AAP) leader and former Deputy Chief Minister of Delhi Manish Sisodia to Enforcement Directorate (ED) custody till March 17 in a money laundering registered in connection with excise policy for the year 2021-22.

Special Judge MK Nagpal pronounced the order after hearing Senior Advocates Dayan Krishnan, Mohit Mathur and Siddharth Aggarwal for Manish Sisodia. Zoheb Hossain represented ED.

Sisodia was sent to judicial custody in the CBI case earlier this week. 

Regarding Sisodia’s role in the implementation of excise policy, Hossain submitted that the policy was implemented as part of a conspiracy to give wholesale business profit of 12% to certain private companies. It was submitted that such a stipulation was not mentioned in the minutes of meetings of Group of Ministers (GoM).

”There was conspiracy to frame the policy in such a manner so as to ensure illegal benefits to some persons. There was no suggestion from the public to fix 12% of wholesale profit margin to private entities,” he said.

It was also submitted that there was a conspiracy which was coordinated by Vijay Nair and other individuals along with South Group in order to give extraordinary profit margin to wholesalers. He further said that Vijay Nair was acting on behalf of the Chief Minister and Deputy Chief Minister of Delhi.

“Members of South group further got control of 9 zones therefore making a serious cartel in the excise business in Delhi,” Zoheb submitted.

On destruction of evidence, Zoheb said that Sisodia destroyed 14 phones out of which only two were recovered. It was submitted that the AAP leader used sim cards and phones which were purchased on the name of others individuals.

“The proceeds of crime is quantified for over Rs. 292 crores. Considering the magnitude of the matter, we need to identify the complete modus operandi. We need to confront other persons who we have summoned. We have issued summons to seven persons. Therefore, we are seeking remand of 10 days,” he said.

Appearing for Sisodia, Krishnan argued that not even a single penny was traced from the AAP leader which is an essential ingredient for the offence of money laundering.

”In money laundering, you're (judge) expected to look at concealment, possession and use. It has to be traced to the individual. Not a single penny has been traced to me. So they say Vinay Nair portrayed himself as the representative of Manish Sisodia. Laughable to say the least…..We are talking about a premium investigating agency. Why have they not been able to trace a single penny to me?,” he said.

He added: “Under this draconian Act, the power to arrest is an extreme position. Where you've (judge) to decide that their subjective satisfaction in the application would show that I'm likely to be guilty. Look at their document, everything is I heard, I heard, I heard.”

Calling the process adopted by ED itself illegal, Krishnan questioned the timing of Sisodia’s arrest in the money laundering case one day before his bail application was fixed for hearing in the CBI case.

“I was never summoned by ED, until one fine day, while remand applications were going on in CBI case, my bail application was fixed….one day before hearing of bail application, I'm arrested. ECIR is of August 2022. This kind of conduct must concern the court. The process itself is illegal here….It can't be that a person is kept in custody in a special Act (PMLA) just to ensure that he does not get bail,” he said.

He submitted that the court cannot ignore that the timing of arrest in itself is mala fide, done only with a purpose to keep a man in “continued detention.”

 “Madal Lal case says that you've to show concealment, possession, acquisition, use, claiming of proceeds of crime…. Where is a whisper of all this, particularly in view or section 19? Time has come for courts to come down heavily in matters like this and I urge you sir to be the first,” he said.

Adding to the contention, Mathur submitted that it is “only a fashion these days” that the investigating agencies take arrest and custody remand as a matter of right. 

“Time has come for these courts dealing with such agencies, they must come down heavily in case of any entitlement that they feel they have,” he said.

 On the other hand, Aggarwal submitted: “…without any money trail and without any money coming to me, can we say that in their assessment that i am guilty of money laundering?”

While passing the order on ED remand, the court adjourned hearing in Sisodia’s bail application for March 21 due to paucity of time.

On February 27, the trial court had remanded Sisodia to CBI's custody for five days. He was again sent to CBI custody for two more days last week.

Sisodia was arrested on February 26 after an interrogation of more than 8 hours. He was named as an accused in the FIR. It is the case of the probe agency that there were alleged irregularities in the framing and implementation of the excise policy for the year 2021-22.

The CBI alleged that Sisodia was arrested as he gave evasive replies and did not cooperate with the investigation despite being confronted with evidence.

CBI had commenced a second round of questioning. Sisodia was earlier questioned on October 17 last year. Chargesheet in the matter was filed on November 25, 2022.

The CBI FIR states that Sisodia and others were instrumental in “recommending and taking decisions” regarding the excise policy 2021-22 “without approval of competent authority with an intention to extend undue favours to the licensee post tender.”

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