India's Ministry of Home Affairs on Wednesday (Jan 15) authorised the Enforcement Directorate (ED) to prosecute former Delhi chief minister Arvind Kejriwal under the Prevention of Money Laundering Act (PMLA) for his alleged involvement in money laundering related to the liquor scam case, Indian media reported citing official sources.

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The ED also got a nod to initiate prosecution against former deputy CM Manish Sisodia in the case.

The development comes as both leaders of the Aam Admi Party (AAP) are out on bail.

The Supreme Court ordered Kejriwal to be released in September 2024 and Sisodia was released in August.

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The move also comes following the Supreme Court's ruling on November 6 that the ED must obtain prior sanction, just like the Central Bureau of Investigation (CBI), to prosecute under the Prevention of Money Laundering Act (PMLA). 

This sanction is required for prosecution under section 197 (1) of the Criminal Procedure Code, now known as section 218 of the Bharatiya Nagarik Suraksha Sanhita.

The ruling had put the framing of charges against Kejriwal in the excise policy case on hold, as the Delhi court awaited the necessary sanction. 

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Also read: Delhi liquor policy case: ED files chargesheet against Kejriwal, names AAP as accused

Delhi liquor scam

The federal probe agency had arrested Kejriwal from his official residence in March, last year. He was released on bail in September.

The arrest was made in the case pertaining to alleged corruption and money laundering in formulating and executing the Delhi government's excise policy. 

The Delhi government had implemented the policy on November 17, 2021.

But it was scrapped at the end of September 2022.

Corruption allegations were levelled against AAP, which the party has repeatedly denied.

The investigating agencies have said that the profit margins of wholesalers were increased from five per cent to 12 per cent under the new policy. 

The agencies have alleged that the new policy resulted in cartelisation and those ineligible for liquor licences were favoured for monetary benefits.

(With inputs from agencies)