Excise policy case: Delhi HC issues notice on ED plea against trial court remarks

March 10, 2026

New Delhi: The Delhi High Court on Tuesday issued notice on a plea filed by the Enforcement Directorate (ED) seeking expunging of certain adverse observations made against it by a trial court while discharging all accused, including AAP leaders Arvind Kejriwal and Manish Sisodia, in the excise policy case.

AAP leaders directed to file responses 

A single-judge Bench of Justice Swarana Kanta Sharma directed the top AAP leaders and other respondents to file their responses to the ED’s petition, and indicated that the matter would be heard along with the Central Bureau of Investigation’s (CBI) plea challenging the discharge order passed by the Rouse Avenue Court.

“I will issue notice in this matter and keep it on the same day as the other case. When I decide that case, I will be reading the entire judgment,” Justice Sharma said during the hearing. Appearing for the ED, Additional Solicitor General (ASG) S.V. Raju submitted that the trial court had made sweeping remarks against the federal anti-money laundering agency despite the fact that the proceedings before it concerned only the CBI case. “PMLA is not before the judge. It is a CBI case. Proceeds of crime was not before the judge.

He (Kejriwal) was not arrested for money laundering in the CBI case,” ASG Raju argued. He contended that the ED had been criticised without being given an opportunity to present its case. “In a matter where ED has no concern, the judge could have made such observations only after hearing us. This affects us. ED has been condemned without hearing,” the Centre’s law officer submitted. At this, Justice Sharma orally remarked, “These are general observations. I am sure this has nothing to do with the case in question,” adding that the Delhi High Court would examine whether such observations could have been made.

When ASG Raju insisted that even general observations could prejudice the ED in future proceedings, the Delhi HC said the entire trial court judgment was already under challenge before it. “This entire judgment anyway is under challenge. When I decide that case, I will be reading this,” Justice Sharma said.

Delhi High Court notice on CBI criminal revision

On Monday, the Delhi High Court had issued notice on the CBI’s criminal revision petition assailing the trial court’s decision to discharge all 23 accused in the case relating to the now-scrapped excise policy introduced by the then AAP-led Delhi government.

It had also stayed the trial court’s direction ordering departmental action against a CBI officer who had investigated the case and said the remarks made against the investigating agency and the officer would remain stayed.

In its petition, the ED has sought deletion of several paragraphs from the February 27 order passed by the Special Judge at the Rouse Avenue Courts, contending that the remarks were “extraneous to the subject matter” of the proceedings and were recorded despite the federal anti-money laundering agency not being a party to the case..