Sanjay Singh gets bail: What are the ED’s allegations against the senior AAP leader and MP?

When and why was Sanjay Singh arrested?

Singh was arrested on October 4, 2023 after a 10-hour search at his home in North Avenue, New Delhi. According to the ED, Singh is a “key conspirator” in the alleged scam, in which the wholesale liquor business in Delhi was given to private entities in return for kickbacks. In its first prosecution complaint, the ED said the policy, which came into force in November 2021 but was scrapped in July 2022, was “formulated with deliberate loopholes” that “promoted cartel formations through the back door” to benefit AAP leaders.

According to the ED, the alleged proceeds of crime amounted to more than Rs 292 crore, and a part of the money was used by the AAP in its election campaign in Goa.

The Delhi Excise Policy 2021-22 envisaged the exit of the state from the liquor business to allow it to reach its full potential. The stated goal of the policy was to shut down black marketing and the liquor mafia, increase revenue, improve the consumer experience, and ensure equitable distribution of liquor vends across the capital. The licensees were allowed to offer discounts and set their own prices instead of selling at the MRPs fixed by the government.

What were the specific allegations against Singh?

In its remand application, the ED had said: “Sanjay Singh has exploited and gained illegal money/ kickbacks, which is ‘proceeds of crime’ generated from the liquor policy (2021-22) scam… (He) has been part of the conspiracy of collecting kickbacks from liquor groups… (He) has a close relationship with Dinesh Arora since 2017 as revealed by Dinesh Arora as well as from his call records.”

Dinesh Arora is a businessman whom the ED had earlier accused of being a “conduit for kickbacks” between the “South group” and the AAP. The ED had claimed that Arora had told investigators that he spoke to many restaurant owners at Sanjay Singh’s behest, and had “arranged cheques amounting to Rs 82 lakh for collection of party funds for the upcoming elections”. The ED had also alleged that Arora had given Rs 2 crore in cash to Singh.

Arora in 2022 turned approver in the CBI case and got bail. In July 2023, Arora was arrested by the ED, but he became an approver in the ED case as well.

In its reply to Singh’s plea for bail in Delhi High Court on January 30 this year, the ED had said: “… It is evident that Sanjay Singh was involved in creating a special purpose vehicle (M/s Aralias Hospitality Pvt Ltd) to launder the proceeds of crime that would have been generated from the business arising out the policy changes as conspired by him and his co-conspirators… Singh was then involved in acquiring, possessing, concealing, dissipating and using proceeds of crime generated from the Delhi liquor scam pertaining to the policy period of 2021-2022.”

What did courts say about the allegations against Singh before this?

On December 22, 2023, Special Judge M K Nagpal, while dismissing Singh’s bail plea, had said: “…This court is of prima facie view that the case against (the) applicant is genuine and the said evidence and material shows (the) involvement of (the) applicant in the commission of the alleged offence of money laundering because he is shown to have been, directly or indirectly, involved in the process or activities connected with proceeds of crime.”

On February 7 this year, Delhi High Court refused Singh bail, saying “prima facie, it is clear that…(Singh) was part of the preparation of the old excise policy and thereafter, the new excise policy was made to suit the co-accused(s) who were to pay kickbacks to the present applicant (Singh) and co-accused(s) and the party concerned, from the profit so generated due to excise policy”.

The court had said there were “specific statements that Rs 2 crore was paid to Sarvesh Mishra for Sanjay Singh at his official residence in lieu of the new excise policy made to suit them and generate profit for them… The role at this stage of the applicant (Singh) cannot completely be ruled out.”