Prosecution Fails To Cross Even Prima Facie Threshold: Delhi Court Discharges Kejriwal, Sisodia In Excise Policy Case.

New Delhi; February 2026: Holding that the prosecution had failed to disclose “even the threshold of a prima facie suspicion, far less the grave suspicion” required for framing of charges, a Special Court in Delhi today has discharged all 23 accused in the CBI case relating to the Delhi Excise Policy 2021-22.

In a strongly worded order, Special Judge (PC Act) Jitender Singh of the Rouse Avenue Court ruled that the prosecution case was “legally infirm, unsustainable, and unfit to proceed any further in law”.

The Court observed that when the material collected by the agency was tested on the touchstone of admissibility, relevance and probative value, “the appearance of a coherent conspiracy dissolves”, exposing the allegations as being founded on inadmissible material and post-facto reconstruction. The Court said that the alleged overarching conspiracy, emphatically projected by the prosecution, stood “completely dismantled” when examined against the evidentiary record. It noted that after an exhaustive review of voluminous documents and statements of nearly 300 witnesses over more than two months, there was no legally admissible material connecting the accused to any criminal misconduct.

Among those discharged are former Chief Minister Arvind Kejriwal, former Deputy Chief Minister Manish Sisodia, and 21 others. The Court categorically held that there was no material to suggest that the Excise Policy (DEP-21/22) was manipulated, altered or engineered to confer undue benefit upon any private individual or the alleged “South Group”. On the contrary, the contemporaneous record clearly established that the policy was the outcome of a consultative and deliberative exercise, undertaken after engagement with stakeholders and in adherence to prescribed procedures.

The judge noted that although there was no statutory requirement to obtain suggestions from the Lieutenant Governor, the file notings reflected that such suggestions were in fact sought, examined and incorporated – affirming the procedural integrity of the policy-making process the procedural integrity of the policy-making process. The prosecution’s central allegation regarding payment of “upfront money” and its alleged recoupment was found to be devoid of legal substratum. The Court observed that in the absence of a tainted policy or demonstrably unlawful implementation, the prosecution theory was reduced to conjecture.

It further remarked that the investigation appeared to have stitched together disparate fragments to create an impression of a vast and complex conspiracy, without legally sustainable material. The attempt to link the alleged proceeds of crime to the Goa Assembly elections was also found to rest more on inference and assumption than on admissible evidence. The Court was critical of the approach adopted by the Central Bureau of Investigation, particularly its reliance on approver statements. It cautioned that granting pardon to an accused and then using his testimony to fill gaps in the prosecution case or rope in additional accused would undermine constitutional safeguards.

In a significant observation, the judge indicated that a departmental inquiry would be recommended against CBI officials for naming public servant Kuldeep Singh as accused number one in the case. The FIR in the case was registered in August 2022 following a complaint by Delhi Lieutenant Governor V. K. Saxena, alleging that the now-scrapped excise policy was designed to favour select liquor licensees by reducing licence fees and fixing profit margins, resulting in kickbacks and losses to the exchequer.

However, the Special Court concluded that the prosecution had failed to meet the minimum legal threshold required at the stage of framing of charges. Compelling the accused to face a full-fledged trial in the absence of admissible evidence, the Court held would amount to a miscarriage of justice and an abuse of the criminal process.

Meanwhile, after being discharged, Manish Sisodia has hailed it an important day in the history of Indian politics and also accused PM Narendra Modi of hatching conspiracy. He stated that the Supreme Court had already said that the case wouldn’t stand trial, which was reiterated by the court as well.

Sisodia added that the court has also set up an inquiry against the CBI officer. “This is a really important day for the politics of the country. Narendra Modi ji was hatching a conspiracy with the strength of ED and CBI just to be in power; that conspiracy has been foiled. The country is questioning him today. SC had already said that the case won’t stand the trial. Today, the judge said the same. An inquiry has been set up on the CBI officer. BJP should admit that they were lying”, said Sisodia.

Meanwhile, Delhi LoP Atishi called Arvind Kejriwal and Manish Sisodia as “kattar imaandar”, asserting that it has been proven how agencies of the central govt conspired and levelled allegations at AAP.

“Aam Aadmi Party ek kattar imaandaar party hai, Arvind Kejriwal aur Manish Sisodia kattar imaandaar neta hain. It is proved today how agencies of the central govt conspired and levelled allegations at AAP. The truth about PM Modi and the BJP has come out before the country today”, said Atishi.

AAP MP Sanjay Singh said that the court’s decision has proven that all cases were a conspiracy and fake that were filed to defame Arvind Kejriwal, Manish Sisodia and Aam Aadmi Party. “It has been proven today that as per a conspiracy, fake cases were filed to defame Arvind Kejriwal, Manish Sisodia and Aam Aadmi Party. Today, the truth has emerged victorious”, said Sanjay Singh.

The Rouse Avenue Court on Friday discharged Former Delhi Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia in the Delhi Excise Policy case. The court observed that the alleged central conspiratorial role could not be substantiated. The court noted that the allegations “failed judicial scrutiny” and found “no criminal intent” on the part of Manish Sisodia. It further stated that the conspiracy theory “cannot survive against one constitutional authority”.

The CBI filed its first chargesheet in 2022, followed by multiple supplementary chargesheets. The agency has alleged that Rs. 100 crore was paid by a “south lobby” to influence the now scrapped excise policy in its favour. In total, CBI had charge sheeted 23 accused, including Arvind Kejriwal, Manish Sisodia, K Kavitha, Kuldeep Singh, Narender Singh, Vijay Nair, Abhishek Boinpally, Arun

Ramchandra Pillai, Mootha Goutam, Sameer Mahendru, Amandeep Singh Dhall, Arjun Pandey, Butchibabu Gornatla, Rakesh Joshi, Damodar Prasad Sharma, Prince Kumar, Chanpreet Singh Rayat, Arvind Kumar Singh, Durgesh Pathak, Amit Arora, Vinod Chauhan, Ashish Mathur, and P Sarath Chadra Reddy.

During arguments, the CBI maintained that the offence of criminal conspiracy must be viewed in its entirety and that the sufficiency of evidence should be tested during trial. Represented by Additional Solicitor General D P Singh and advocate Manu Mishra, the agency argued that there is adequate material to frame charges against all the accused.

On the other hand, senior advocate N Hariharan, appeared for Kejriwal, contended that there is no incriminating material linking his client to the alleged conspiracy. He argued that the fourth supplementary chargesheet naming Kejriwal merely repackages earlier allegations and that Kejriwal was performing his official duties as Chief Minister. Hariharan further submitted that Kejriwal was not named in the initial chargesheet or in three earlier supplementary chargesheets. His name appeared only in the fourth. The defence have also questioned the basis of further investigation and the evidentiary value of statements, including that of approver Raghav Magunta.

Team Maverick.