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DNA Explainer: What is Delhi excise policy case and why ED has arrested Delhi CM Arvind Kejriwal?

ED arrested CM Arvind Kejriwal after it issued nine summonses to him regarding the Delhi excise policy case.

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Enforcement Directorate (ED) has arrested Delhi Chief Minister Arvind Kejriwal hours after the Delhi High Court refused to protect him from arrest in connection with the Delhi excise policy-linked money laundering case. The central agency has issued nine summonses to Delhi CM regarding the case. Soon after the high court order, an ED team reached his residence and carried out searches. Subsequently, he was arrested. He is likely to produce before a PMLA court on Friday. In the same case, AAP leaders Manish Sisodia and Sanjay Singh are already in judicial custody.

Why Arvind Kejriwal arrested by ED?

ED arrested CM Kejriwal after it issued nine summonses to him regarding the Delhi excise policy case. The case pertains to alleged corruption and money laundering in formulating and executing the Delhi government's now-scrapped excise policy for 2021-22. The central agency claimed that AAP received kickbacks worth Rs 100 crore in the excise policy. 

Kejriwal's name has been mentioned multiple times in the charge sheets filed by the ED. The agency has alleged that the accused were in touch with Kejriwal for formulating the excise policy that resulted in undue benefits to them in return for which they paid kickbacks to the AAP.

What was Delhi's liquor policy 2021-22?

The now-scrapped Delhi's liquor policy 2021-22 was formed on the basis of an expert committee report. Kejriwal-led AAP government implemented the policy in November 2021. Under the new policy, 849 liquor vends were awarded to private companies through open bidding. The city was divided into 32 zones, each with a maximum of 27 vends. Instead of individual licences, bidding was done zone-by-zone.

The Delhi government had said that the policy aimed to increase government revenues, better customer experience and to end black marketing. After the new excise policy 2021-22 came into force, government’s revenue reportedly increased by 27 per cent and generated around Rs 8,900 crore. But amid controversy over the policy, the Delhi government had to roll back it in July 2022.

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