High Court Intervenes in Liquor Policy Case; Stays Rouse Avenue Court’s Remarks Against CBI

NEW DELHI — In a major legal turn for the Delhi Liquor Policy case, the Delhi High Court on Monday stayed the scathing remarks and directions for an inquiry against CBI officers previously issued by the Rouse Avenue Court.

The bench, led by Justice Swarana Kanta Sharma, also issued notices to prominent AAP leaders including Arvind Kejriwal and Manish Sisodia, as well as BRS leader K. Kavitha, following the CBI’s challenge to their discharge from the case.

Key Judicial Interventions

The High Court’s order effectively pauses several critical elements of the lower court’s ruling:

• Stay on Remarks: Scathing observations suggesting the CBI “created a narrative” based solely on approver statements have been put on hold.

• Inquiry Halted: The direction to conduct an inquiry into the conduct of the CBI investigating officers has been stayed.

• ED Trial Paused: The court also stayed the ongoing trial in the Enforcement Directorate’s (ED) parallel money laundering case until the CBI’s plea against the discharge of the 23 accused is decided.

Arguments from the Solicitor General

Representing the CBI, Solicitor General Tushar Mehta termed the alleged scam a “national shame” and one of the largest in Delhi’s history. He argued that the trial court’s discharge order amounted to an “acquittal without trial” and ignored a “meticulous and scientific investigation.”

The Solicitor General highlighted several key pieces of evidence he claims were overlooked:

• Hawala Trails: The investigation allegedly traced ₹44.50 crore transferred through hawala channels to fund election activities in Goa.

• Witness Statements: Multiple statements recorded under Section 164 CrPC detail the delivery of bribes ranging from ₹19 crore to ₹100 crore.

• Premature Assessment: Mehta argued that “discharge is not the stage for seeking corroboration,” suggesting the lower court applied an incorrectly high burden of proof at the pre-trial stage.

Next Steps in the Legal Battle

The High Court has set the next hearing for March 16, 2026. The 23 discharged individuals, including the top brass of the Aam Aadmi Party, must now respond to the notices issued by the court.

The stay provides a significant reprieve for the CBI, whose investigative methods were under intense scrutiny following the Rouse Avenue Court’s observation that the agency expected the judiciary to merely “join the dots” without sufficient evidence.

Case Summary: March 9 Update