Supreme Court Grants Interim Bail to Arvind Kejriwal in Excise Policy Case, Refers Legal Question on PMLA to Larger Bench

Interim Relief for Kejriwal , but Custody Continues in CBI Case

In a significant development, the Supreme Court on July 12 granted interim bail to Delhi Chief Minister Arvind Kejriwal in the money laundering case initiated by the Enforcement Directorate (ED) in relation to the now-scrapped Delhi Excise policy.

The three-judge bench, comprising Justices Sanjiv Khanna and Dipankar Datta , observed that certain legal questions arising out of Kejriwal 's plea challenging his arrest by the central agency need to be referred to a larger bench.

Referral to Larger Bench

The court said the legal question regarding the "necessity to arrest" under Section 19 of the Prevention of Money Laundering Act (PMLA) needs to be considered by a larger bench of the top court.

Section 19 of the PMLA provides that if the ED, on the basis of material in its possession, has reason to believe that any person has been guilty of an offence punishable under the Act, it may arrest such person.

Kejriwal 's Arguments

Senior advocate Abhishek Manu Singhvi, representing Kejriwal , had argued that the material being cited by the ED now to defend the Chief Minister's arrest was not present during his arrest and was produced later.

Singhvi contended that all the evidence cited by the ED predated July-August 2023 and was already part of the case against former Deputy Chief Minister Manish Sisodia . He argued that there was no new material to justify Kejriwal 's arrest.

The senior counsel also argued that there should be a "necessity to arrest" as a precondition for arrest under Section 19 PMLA.

ED's Stance

Additional Solicitor General SV Raju, appearing for the ED, argued that the agency need not supply the incriminatory material it has against an accused at the time of arrest.

Raju contended that "the reason to believe (that an accused has committed an offence) is the material before him (ED officer)." He argued that in criminal law, the accused is not entitled to any copy before the chargesheet is filed, as otherwise, the evidence might be tampered with and witnesses threatened.

Kejriwal to Remain in Custody for CBI Probe

Despite the interim bail granted by the Supreme Court, Kejriwal will continue to remain in Tihar jail as he has been separately arrested by the Central Bureau Of Investigation (CBI) in a corruption case related to the alleged excise policy scam.

The Supreme Court's order underscored that Kejriwal is an "elected leader and the Chief Minister of Delhi, a post holding influence and importance," while granting him the interim relief.

The legal battle surrounding the excise policy case and Kejriwal 's arrest continues, with the Supreme Court now set to examine the crucial question of the "necessity to arrest" under the PMLA.

Key Takeaways

• Supreme Court grants interim bail to Arvind Kejriwal in the ED's money laundering case related to the Delhi Excise policy.
• The court refers the legal question on the "necessity to arrest" under Section 19 of the PMLA to a larger bench.
• Kejriwal will remain in custody due to his separate arrest by the CBI in the same matter.
• The court acknowledges Kejriwal 's position as an elected leader and the Chief Minister of Delhi.
• The case highlights the ongoing legal battle surrounding the excise policy controversy and the arrest of political leaders.