Excise policy: Delhi HC denies bail to Vijay Nair in money laundering case

The Delhi High Court on Monday refused to grant bail to Aam Aadmi Party's communication in-charge Vijay Nair in a money laundering case related to the alleged Delhi excise policy scam, noting that the statements of witnesses showed kickbacks claimed to have been paid by the potential beneficiaries were used in the Goa assembly elections.

Justice Dinesh Kumar Sharma, by separate orders, also dismissed the bail applications of former Delhi deputy chief minister Manish Sisodia, businessman Abhishek Boinpally and liquor giant Pernod Ricard's executive Benoy Babu in the case lodged by the Enforcement Directorate (ED).

The court said while personal liberty is a "sacrosanct right and pre-trial detention cannot be taken as a punitive measure", such right has to be balanced with the right of the society at large.

The judge, in his 45-page order passed on the bail plea by Nair, observed that the allegations are "extremely serious in nature" and the alleged conspiracy in the present case was "peculiar in nature where the excise policy was allegedly framed with mala fide intention".

"The accused person (Nair) in the present case acting in furtherance of the conspiracy circumvented the policy and got framed the policy in such a manner to continuously generate and channel illegal funds. The allegations are that deliberate loopholes were left to facilitate illegal and criminal activities," the court said.

"Dinesh Arora (approver)... specifically stated that the Petitioner Vijay Nair got into an arrangement with Arun Pillai, Abhishek Boinpally, and Buchi Babu (who were the representatives of South Group.. The south group gave Rs. 100 Cr (approx.) to Vijay Nair in advance and they were supposed to recoup this money from the 3 major wholesalers. There are also statements on the record that how this kickback was used in Goa elections," it added.

The Delhi government had implemented the excise policy on November 17, 2021 but scrapped it at the end of September 2022 amid allegations of corruption.

The court, while dealing with co-accused Babu's bail plea, observed that in case of a conspiracy to generate proceeds of crime, a person who is connected with any related process or activity cannot avoid the responsibility.

Justice Sharma said, at this stage, there was sufficient material on the record to support the ED's claim that Babu was indulging or knowingly assisting in the process or activity connected with the proceeds of crime.

Similarly, the court said, at this juncture, it was unable to conclude that Nair was not guilty of the of the charges levelled against him, in view of the seriousness and gravity of the case.

Both Nair and Babu were arrested by the ED in November last year.

The court also said there was no illegality or perversity in an earlier trial court order refusing to release Nair on bail, adding, "the alleged conspiracy has been well spun and there are prima facie credible materials on record".

"It has also come on the record that accused Vijay Nair was a close associate of Chief Minister, GNCT of Delhi and Sh. Manish Sisodia, Deputy Chief Minister. The investigation has further revealed that Vijay Nair arranged a video call through face time between Chief Minister, Government of NCT of Delhi and Sameer Mahendru where Chief Minister said that Vijay Nair is his boy and they should trust him," the court recorded in its order.

"Learned Trial Court while considering the evidence on record observed that Vijay Nair had in fact emerged as the string holder of the entire criminal conspiracy hatched by the accused persons," the court said.

It observed that though it is not disputed that he was the Media and Communication incharge of AAP, at the same time, it was revealed during the investigation that he was actually representing the AAP and GNCTD in different meetings that took place with the stakeholders in liquor business at different places.

While refusing to interfere with the trial court decision rejecting the bail application of Boinpally, who was arrested in November last year, the court said the lower court had meticulously examined the case on merits and reached a finding which was duly supported by sound reasons.

The court also dismissed his petition challenging the legality and validity of his arrest.

According to the CBI and ED, irregularities were committed while modifying the excise policy and undue favours were extended to the licence holders.

The money laundering case stems from the CBI FIR which was lodged after Delhi Lieutenant Governor V K Saxena recommended a CBI probe.

The CBI has alleged that Nair was involved in meeting the other co-accused and liquor manufacturers as well as distributors at various hotels in Hyderabad, Mumbai and Delhi for arranging "ill-gotten money through hawala operators".

It has also claimed that Boinpally was part of the clandestine meetings and was involved in the conspiracy to launder money along with another accused Sameer Mahendru, a businessman dealing in liquor.