The Union Home Ministry has approved the Enforcement Directorate (ED) to file a case against former Chief Minister Arvind Kejriwal for alleged irregularities in Delhi's excise policy for 2021-22, individuals familiarised with the case spoke on Wednesday.

The action comes months after the Supreme Court on November 6 ruled that the ED, like the Central Bureau of Investigation (CBI), will have to obtain prior permission to file a case under Section 197(1) of the Code of Criminal Procedure (now Section 218 of the Bharatiya Nagarik Suraksha Sanhita or Indian Civil Protection Code) in money laundering cases. The chargesheet against Kejriwal in the excise policy case was undecided in a Delhi court in the absence of approval for framing charges.

HT reported Tuesday that the ED will obtain approval against all government employees before filing chargesheets in its Prevention of Money Laundering Act (PMLA) case. Last month, Lieutenant Governor VK Saxena approved the agency's filing of a case against Kejriwal. In August 2024, the CBI received the same approval in a parallel corruption case against Kejriwal related to excise policy.  

The ED arrested Kejriwal, who was out on bail under the PMLA on March 21 and named him in a chargesheet on May 17, claiming that out of the Rs 100 crore bribe taken on behalf of specific liquor traders, Rs 45 crore was used for the Aam Aadmi Party's (AAP) Goa election campaign. The ED said that Kejriwal is ultimately responsible for operating and generating funds as AAP's national convener and executive member. It has named Kejriwal, the brain behind AAP and controlling its activities.

The ED stated that Kejriwal was the main kingpin involved in decision-making, mentioning statements from witnesses. It accused Kejriwal of demanding bribes. It claimed that criminal proceeds worth Rs 1,100 crore have been identified. The ED has called Kejriwal the "mastermind" of excise policy-related irregularities. It said that Kejriwal, his then deputy Manish Sisodia and former AAP media in-charge Vijay Nair had sought "additional" money of Rs 100 crore for their election funds.

The agency alleged that Kejriwal's "close associate" Vinod Chauhan had orchestrated the transfer of bribe money worth Rs 25.5 crore from Delhi to Goa for AAP. Kejriwal has disowned all the allegations made against him.