Former Delhi deputy chief minister and senior AAP leader Manish Sisodia was also discharged in the matter.
The court refused to take cognisance of the Central Bureau of Investigation (CBI) chargesheet in the alleged excise policy-linked corruption case. The court observed that the alleged “central conspiratorial role” could not be substantiated.
It noted that the allegations had “failed judicial scrutiny” and found “no criminal intent” on the part of Sisodia. The court further remarked that the conspiracy theory “cannot survive against one constitutional authority.”
The verdict brings major relief for Kejriwal, who had spent a significant period in jail during his tenure as Chief Minister of Delhi in connection with the case.
Read more: Arvind Kejriwal breaks down after discharge in Delhi excise policy case; watch video
“I am not corrupt. The court has said that Kejriwal and Manish Sisodia are honest,” Kejriwal said after the verdict, breaking down as he embraced his close aide and former deputy Sisodia.
Shortly after the verdict was announced, Kejriwal’s wife, Sunita Kejriwal, reacted in a post on X saying that ‘truth shall prevail’.
“In this world, no matter how powerful one becomes, one cannot rise above Shiva Shakti. Truth always prevails,” Sunita Kejriwal said in a post on X.
What is the Delhi excise policy case?
The case stems from the Delhi government’s Excise Policy 2021-22, introduced by the AAP government as a major reform of the capital’s liquor trade. The policy ended the state’s role in retail sale of liquor and allowed private players to operate retail outlets, while the government retained control over wholesale licensing and regulation.
The AAP government had argued that the new framework would curb corruption, improve consumer experience and increase revenue by dismantling the alleged liquor “cartel” system that existed under the previous regime.
However, the policy came under scrutiny after Delhi Lieutenant Governor V K Saxena recommended a CBI probe in 2022, citing alleged procedural lapses and financial irregularities in its formulation and implementation. The Delhi government subsequently withdrew the policy and reverted to the previous excise regime.
The CBI registered an FIR alleging irregularities in the modification of the policy, including alleged undue benefits to certain liquor licensees and a purported Rs 100 crore payment by a “south lobby” to influence the policy. The agency filed its first chargesheet in 2022, followed by multiple supplementary chargesheets.
The Enforcement Directorate (ED) launched a parallel money laundering probe based on the CBI’s case.
Sisodia, who held the excise portfolio at the time, was arrested by the CBI in February 2023 after multiple rounds of questioning and later resigned from the Delhi cabinet. Kejriwal was subsequently arrested by the ED in connection with the money laundering probe, triggering political protests by the AAP.
Both leaders have consistently denied any wrongdoing, calling the case politically motivated and alleging that investigative agencies were being used to target the then elected Delhi government.

