The legal opinion by the law officer was tendered in response to several queries by the lieutenant governor on whether statements by Kejriwal against Jaitley were in his official capacity and should a special lawyer be provided to the chief minister at the expense of the state exchequer.
Replying to both the queries in the 'negative', Additional Solicitor General (ASG) Sanjay Jain has said the statements made by Kejriwal on his personal Twitter account "have no connection" with his official or public duties and were "distinctly in his individual or personal capacity".
He has advised the LG to not approve the proposal for appointment of senior advocate Ram Jethmalani to defend Kejriwal and pay the lawyer out of the government coffers.
"The position of a chief minister or for that matter as government servant is that of a trustee of public money. Public money can spent only in accordance with law and procedures prescribed and must ensure the highest level of financial discipline," the ASG has said.
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Jaitley, who had denied the allegations levelled by the AAP leaders in December 2015, had filed the suit seeking Rs 10 crore as damages from Kejriwal and the other five, claiming they had made "false and defamatory" statements in the case involving DDCA and harmed his reputation.
Jaitley had also lodged a criminal defamation case against them in a subordinate court where the proceedings are on.
As per the opinion sent to the LG on April 6, Kejriwal had "opted to comment upon the affairs of a society (DDCA) and its erstwhile office bearer, which is not called upon to be so commented in the ordinary course of his executive or administrative functions".
As per the terms of engaging Jethmalani, the veteran criminal lawyer was to be paid a retainer fee of Rs one crore and an appearance fee of Rs 22 lakh per court visit, according to the legal opinion.
This proposal, however, was objected to by the law and the general administrative departments for not having prior concurrence of the finance department or the LG's approval.
Sisodia, had, thereafter, issued a standing order (SO) regarding the appointment of special counsel to represent the Delhi government.
The LG had sought the ASG's opinion on whether the SO was in compliance of the Transaction of Business Rules (TBR), GNCTD Act and relevant provisions.
On this, Jain has said that the SO had to be approved by the council of ministers and then the LG as it would have an effect on the finances of Delhi, but this procedure was not followed.
He has also said that the SO was issued in order "to circumvent the law department observations that prior concurrence of the finance department and approval of the LG would be required" for appointing Jethmalani.
"The machination of trying to usurp the powers of the finance department and the LG clearly show a blatant violation of established norms, rules, rulings as well as the procedures envisaged under the Constitution of India," the ASG has said.
"In light of the facts and circumstances, in my opinion public money cannot be used to appoint special counsel to defend the chief minister for the statements made by him in his personal capacity and the proposal to this effect should not be approved by the LG," he has said.