Excise Policy Scam: Sanjay Singh Created Special Purpose Vehicle to Launder Money, ED Tells Delhi HC

Arrested AAP MP Sanjay Singh was allegedly involved in creating a special purpose vehicle to launder “proceeds of crime” that would have been generated from the business arising out of the changes in Delhi excise policy, the Enforcement Directorate (ED) has contended before the Delhi High Court. Singh was arrested in connection with a money laundering case linked to the Delhi excise policy ‘scam’.

The ED submitted that Singh was involved in acquiring, possessing, concealing, dissipating and using proceeds of crime generated from the Delhi liquor scam pertaining to the policy period of 2021-22. The ED’s contentions were made in its affidavit filed in response to Singh’s bail plea in the money laundering case.

The Rajya Sabha member, arrested by the ED on October 4 last year, has challenged a trial court’s December 22 order dismissing his bail plea in the money laundering case. The case was listed before Justice Swarana Kanta Sharma on Tuesday. It has now been listed for Wednesday due to the unavailability of ED’s counsel.

In its affidavit, the probe agency said that it was revealed during investigation that Singh is a key conspirator in the alleged scam and he was closely associated with a number of accused or suspects in this case, businessmen Dinesh Arora and Amit Arora. “… 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. Furthermore, Sanjay 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 2021-22,” it said.

The agency further claimed that the AAP leader has gained illegal money or kickbacks which are proceeds of crime generated from the liquor policy (2021-22) scam and that he has also played a role in conspiracy with others. The investigation has revealed that Singh has received Rs 2 crore proceeds of crime, ED said.

It said Singh has been in possession of certain confidential documents pertaining to the investigation of this case which are not in public domain. During the search conducted on his premises on October 4, 2023, certain confidential documents which are prints of images taken in the ED office and obtained illegally were recovered, it said.

Senior advocate Mohit Mathur, appearing for Singh, had submitted that the senior AAP leader has been in custody for the last three months and no role has been attributed to him in the predicate offence. He had said Singh was arrested after the ED’s “star witness” made a statement.

The ED has alleged that Singh played a key role in the formulation and implementation of the now-scrapped excise policy, which allegedly benefited certain liquor manufacturers, wholesalers and retailers, for monetary consideration. The trial court had observed that he was connected with the “proceeds of crime to the extent of Rs 2 crore” and the case against him was “genuine”.

The case pertains to the alleged corruption in formulating and executing the city government’s excise policy for 2021-22, which was later scrapped. Following a recommendation by Lieutenant Governor V K Saxena, the CBI registered an FIR over the alleged corruption.

The trial court had said the Enforcement Directorate’s “basic case” was “approved” by the Supreme Court, which had also “endorsed” that bribes or kickbacks were paid for the formulation of the Delhi government’s excise policy for 2021-22. It had rejected Singh’s submissions that he cannot be made an accused in the money laundering case as he was not named in the main FIR by the CBI.