Strong Observations: Supreme Court Tears Into CBI, ED, Asks How Money Laundering Case Was Made Out Against Manish Sisodia

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While making strong observations the Supreme Court has posed a volley of questions to the Central Bureau of Investigation and the Enforcement Directorate about the Delhi excise policy ‘scam’ and asked the anti-money laundering agency how a case was made out against former deputy chief minister Manish Sisodia.

The top court said merely because some lobby or pressure groups had sought a certain policy change does not imply there was corruption or commission of crime unless an element of bribery was involved.

A bench of Justices Sanjiv Khanna and SVN Bhatti grilled both the federal agencies over the alleged involvement of Sisodia in the corruption and money laundering cases, and remarked those cases won’t “stand two questions” before the trial court.

“We understand that there was a policy change and everyone will support policies which are good for business. Pressure groups are always there but policy changes without money consideration will not matter. It’s the money part which makes it an offence. If we go to an extent to say that there cannot be any pressure groups, no government can function…Lobbying will always be there. Of course, bribes cannot be accepted,” the bench told Additional Solicitor General SV Raju, appearing for both the CBI and the ED.

Raju said the policy was tailor-made so as to benefit the wholesalers and increase their share of profit in the liquor business.

“Under the old policy, there was no way you can get the kickback and hence, there arose the need for policy change,” he alleged, adding that under the old excise policy, five per cent profit was fixed for the wholesalers while under the new, it was increased to 12 per cent.

The bench said most of the allegations in the corruption case registered by the CBI against Sisodia were “hearsay”, based on the statements made by approvers and would not pass scrutiny before the trial court without any concrete material.

“Two questions in the cross-examination and this will fall flat,” Justice Khanna observed.

The top court is hearing two separate bail petitions of Sisodia in the corruption and money laundering case registered by the CBI and ED respectively.

The bench also asked the ED as to how Sisodia can be booked for the offence of money laundering when there was no evidence to connect him to the alleged proceeds of crime.