Delhi Liquor Case: Why the Court Cleared Kejriwal and Sisodia
Delhi’s liquor policy case took a dramatic turn after a court discharged Arvind Kejriwal and others, but the legal and political fight is still ongoing.
The controversy around Delhi’s liquor policy, which began in 2021, continues to shape both legal and political developments in the capital.
In 2021, the Aam Aadmi Party government in Delhi, led by Chief Minister Arvind Kejriwal and then Deputy Chief Minister Manish Sisodia, introduced a new excise (liquor) policy. The government said the policy would modernise liquor sales, increase revenue, and reduce corruption by replacing government-run shops with private sellers.
However, opposition parties alleged that the policy favoured certain businesses and caused losses to the government. Due to the growing controversy, the policy was withdrawn in September 2022.
Despite the withdrawal, investigations continued. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) probed alleged corruption and money laundering linked to the policy.
Sisodia was arrested in February 2023 and remained in jail for over a year before getting bail from the Supreme Court in August 2024. Kejriwal was arrested on 21 March 2024 in the money-laundering case. He received interim bail in May 2024 and later regular bail in September 2024. However, both the main criminal case and the money-laundering case remained pending.
In 2025, Delhi went to elections. With Kejriwal facing court cases and constant headlines about the liquor policy controversy, AAP suffered a major defeat. The Bharatiya Janata Party (BJP) came to power in Delhi. Many observers believed the controversy had significantly damaged AAP’s public image.
The situation changed in early 2026. A special court at the Rouse Avenue Court examined the CBI’s charges against Kejriwal, Sisodia, and other accused persons.
After months of hearings, the court said the CBI had not shown enough solid evidence of a criminal conspiracy. The judge pointed out gaps in the timeline and questioned whether the alleged bribe story matched the actual people involved.
On 27 February 2026, the court discharged all 23 accused persons. A discharge means the court believes there is not enough evidence even to begin a full trial.
Following the court order, Kejriwal was seen breaking down in tears. He said, “Main kattar imaandaar hoon” (I am extremely honest).
In videos from outside the courtroom, Sisodia was seen hugging Kejriwal as he struggled to control his emotions after months of legal stress.
Later at home, Kejriwal was welcomed by his family. Video clips showed him emotional as he met his wife, Sunita Kejriwal, and his children. The scene quickly went viral on social media.
AAP leaders called the court order a moral victory. Sisodia said he had suffered unnecessarily and lost valuable time with his family.
However, the matter is not fully closed. The CBI has challenged the discharge order in the Delhi High Court. The agency argued that the trial court ignored important material and that the evidence should have been tested in a full trial.
The High Court will now decide the next step. If it agrees with the CBI, the case could reopen. If it upholds the discharge, the case may effectively close for Kejriwal and the others.
Meanwhile, Kejriwal has returned fully to active politics. He has challenged the BJP, saying that if the Prime Minister believes he has lost public trust, fresh elections should be held in Delhi. He also said that if the BJP wins more than 10 seats in such a re-election, he would quit politics.
