Arvind Kejriwal and Manish Sisodia Acquitted as Delhi Court Dismisses Excise Policy Case

NEW DELHI — In a landmark victory for the Aam Aadmi Party (AAP), the Rouse Avenue Court on Friday, February 27, 2026, discharged former Delhi Chief Minister Arvind Kejriwal, his deputy Manish Sisodia, and 21 others in the long-running excise policy case. Special Judge (PC Act) Jitender Singh ruled that the Central Bureau of Investigation (CBI) failed to produce any credible evidence of a criminal conspiracy or intentional wrongdoing in the formulation of the controversial liquor policy. The verdict brings a dramatic end to a legal battle that has dominated the capital’s political landscape for over three years.

In a stinging rebuke to the federal probe agency, Judge Singh observed that the prosecution’s case failed to withstand judicial scrutiny, noting that the CBI had attempted to construct a conspiracy narrative based largely on “conjecture.” The court held that there was no “overarching conspiracy” or criminal intent found within the policy, which had originally been implemented in November 2021. The judge further remarked that the policy-making process did not disclose any prima facie evidence of illegal activity or the “kickbacks” alleged by investigators.

The court was particularly critical of the CBI’s reliance on approver statements—individuals who were originally accused but granted pardon in exchange for testimony. Judge Singh cautioned that using such testimonies to bridge investigative gaps is a “serious violation of constitutional principles” and undermines the safeguards provided to citizens. Additionally, the court recommended a departmental inquiry against CBI officials for their decision to name public servant Kuldeep Singh as the primary accused without sufficient grounds.

The case originated from a 2022 complaint by Lieutenant-Governor VK Saxena, which led to a First Information Report (FIR) and a subsequent investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). While the agencies alleged that the policy was manipulated to favour specific “cartels” and increase wholesaler profit margins from 5% to 12% in exchange for monetary benefits, the court found these claims to be unsubstantiated.

Following the verdict, an emotional Arvind Kejriwal broke down, asserting that his commitment to honesty had been vindicated. “Kejriwal imandaar hai,” he stated, echoing the party’s long-standing defence that the charges were politically motivated. The discharge of all 23 accused, including high-profile figures such as K. Kavitha and Vijay Nair, represents a significant blow to the central agencies’ findings.

Individuals Discharged by the Court