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On February 27, 2026, a special CBI court in Rouse Avenue, Delhi, cleared former Delhi Chief Minister Arvind Kejriwal and Manish Sisodia, former Deputy Chief Minister of Delaware, of the Delhi Excise Policy case, which had been hashed extensively. The order was granted after the court had ruled that the prosecution headed by the CBI and Enforcement Directorate (ED) could not prove any prima facie case against the two AAP leaders.

The excise policy, which became operational in 2021-22 and was subsequently scrapped, has been the subject of corruption, facilitation in distributions of licenses, and kickbacks on wholesalers and retail vendors. Both Kejriwal and Sisodia faced similar but separate FIRs launched by the CBI and additional charge sheets levied by the ED based on money-laundering law.

Having reviewed thousands of pages of papers, witness testimonies, and arguments during several hearings, Special Judge Kaveri Baweja declared that there was no compelling evidence to press charges against either of the two leaders. According to the court, most of the accusations, which included policy formulation violations, particulars, and so-called quid pro quo, could not be supported with definite evidence by which the accused was directly connected with the crime organization or crime money.

The release of the two highest-profile political leaders is a huge blow to the case of the central agencies even though other joint defendants, who include a few businessmen and some of the bureaucrats, are still on trial. It was made at the height of the political slugfest, and AAP celebrated it as being the payback after three years of harassment, although BJP saw it as a technical get-out-of-jail card and an indication that they would appeal the ruling.

Kejriwal, appearing virtually behind bars in Tihar Jail (where he stands on an unrelated issue that started the timing of his release), appreciated the supporters and again asserted that the policy was geared towards the elimination of the liquor mafia. The discharge gained Sisodia, who was put on bail earlier, yet he referred to the release as justice following long injustice.

The decision may affect a series of similar investigations and political stories in the future before the next elections. The discharge order can be appealed to the CBI by the ED in higher courts. In the meantime, it is a major legal and political reprieve to the Aam Aadmi party leadership over the corruption scandal in one of the most high-profile employee-related cases in India.