A special court in Delhi has discharged former Chief Minister Arvind Kejriwal and multiple co-accused in the controversial liquor policy case, concluding that the prosecution failed to produce credible evidence to support its claims.

The verdict sparked emotional scenes, with Kejriwal visibly overwhelmed while addressing supporters. His former deputy, Manish Sisodia, stood beside him as the AAP leader struggled to speak while asserting that he had always maintained his honesty.

However, the former chief minister later shifted to a combative tone, accusing Prime Minister Narendra Modi and Union Home Minister Amit Shah of orchestrating a political conspiracy to dismantle the Aam Aadmi Party. He demanded an apology from the central leadership and challenged the BJP to face fresh elections in Delhi, claiming the party would not cross double-digit seats.

Court Finds No Evidence in Case

The order was delivered by Special Judge Jitendra Singh, who criticised the investigation carried out by the Central Bureau of Investigation (CBI). According to the court, the case was largely based on speculation rather than legally admissible evidence.

The judge noted that the prosecution had failed to establish even the basic threshold of suspicion required for criminal proceedings, leading to the discharge of Kejriwal, Sisodia and 21 others.

Background of the Liquor Policy Controversy

The controversy stems from the Delhi government’s 2021 excise policy introduced by the AAP administration led by Kejriwal. The policy aimed to overhaul the liquor trade in the national capital by allowing private retailers to operate, increasing government revenue and improving consumer access.

The excise department was overseen by then Deputy Chief Minister Sisodia.

In 2022, the Delhi Chief Secretary flagged alleged irregularities in the policy, claiming that certain businesses were given undue benefits and licence fees were reduced or waived. The report suggested that private players might have paid bribes in exchange for favourable provisions.

Following these allegations, Delhi Lieutenant Governor Vinai Kumar Saxena recommended a CBI investigation, and the policy was eventually withdrawn.

Arrests and Legal Battle

Investigating agencies alleged that Kejriwal was a central figure in a conspiracy involving kickbacks linked to the policy. Sisodia was accused of designing the policy framework, while other AAP leaders, including Sanjay Singh and Satyendar Jain, were also named in related cases.

Sisodia was arrested in February 2023, while Sanjay Singh was taken into custody later that year. Jain had earlier been arrested in 2022 in a separate money-laundering investigation.

Kejriwal himself was arrested by the Enforcement Directorate in March 2024 after multiple summons. The Central Bureau of Investigation subsequently arrested him in June while he was already in custody.

Political Fallout

Kejriwal’s arrest had a major political impact in Delhi. The BJP intensified its criticism of the AAP government, demanding his resignation and accusing him of betraying public trust.

Although Atishi Marlena later assumed leadership responsibilities within the party, the AAP faced a significant setback in the 2025 Delhi Assembly elections. The Bharatiya Janata Party secured a sweeping victory, winning 48 of the 70 seats and returning to power in the capital after nearly three decades.

Kejriwal lost the New Delhi constituency to Parvesh Verma, while Sisodia was defeated in Jangpura by Tarvinder Singh Marwah.

Bail and Final Court Decision

The Supreme Court of India granted Kejriwal bail in the ED case in July 2024. Later, in September 2024, he secured bail in the CBI case as well, with the court stating that extended detention without trial could amount to an unjust restriction on personal liberty.

Sisodia and Sanjay Singh were also granted bail earlier, followed by Jain in October 2024.

In its final ruling, the Delhi court concluded that the prosecution’s case lacked a solid legal foundation. The judge stated that the excise policy had been formulated through consultations with stakeholders and followed established procedures.

With the case dismissed, the verdict has intensified the political confrontation between the AAP and the BJP ahead of future electoral battles in the national capital.