The Delhi Anti-Corruption Branch (ACB) on Monday filed a first information report (FIR) against Delhi Chief Minister Arvind Kejriwal and his predecessor Sheila Dikshit in connection with the water tanker scam.
The ACB also said that the two could be called for questioning.
ACB chief M K Meena told IANS that the FIR was registered on the complaint of Bharatiya Janata Party (BJP) legislator Vijender Gupta against Kejriwal "for causing delay and not cancelling the contract for water tankers".
What is the scam all about and how did it come to light
The alleged scam came to light when Delhi's Aam Aadmi Party (AAP) government, in June 2015, constituted a fact-finding committee to probe the irregularities in hiring some 385 stainless steel water tankers by the Delhi Jal Board in 2012, during Dikshit's rule.
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The five-member committee was formed by Delhi Water Minister Kapil Mishra.
Its report, submitted to Kejriwal in August 2015, highlights alleged corruption of Rs 400 crore in the process of awarding tenders for hiring water tankers.
It recommended an FIR against Congress leader Dikshit by the Central Bureau of Investigation (CBI) and the ACB.
Last week, on Monday, almost a year later, the report was sent to the prime minister and Delhi's lieutenant governor by the AAP government.
What did the Delhi government do after the panel submitted its report
On June 12, state Water Minister Mishra had written to Prime Minister Narendra Modi and Lieutenant Governor Najeeb Jung recommending either a CBI or ACB probe against Dikshit in connection with alleged scam.
Mishra also said that the former Delhi chief minister should be behind bars for alleged corruption and that she was not facing any action as the BJP was not keen to punish the guilty.
He also said that the state government had filed three FIRs against Dikshit for various corruption cases.
How did the ACB get involved
On June 16, Jung forwarded the report on the alleged scam to the ACB for further investigation.
However, Jung also forwarded a complaint filed with him by BJP leader Gupta accusing Kejriwal of "suppressing" the committee's report into the tanker scam for 11 months.
"Politically motivated"
A day after Jung ordered the ACB to probe into the alleged scam, Dikshit came out to rubbish the allegations against her as "politically motivated".
The Congress veteran also questioned the timing of the probe saying it was ordered when preparations for crucial polls in Punjab and Uttar Pradesh were picking up momentum.
The allegations come at a time when there has been speculation that Dikshit may be made the Congress' chief ministerial face for next year's Assembly polls in Uttar Pradesh or may be given a major role in the party's campaign for the Assembly polls in Punjab.
She also suggested that Jung may have been under political pressure to order a probe into the case pointing that he was sitting on so many other recommendations of the AAP government.
Reacting to the ACB's move, Kejriwal, for his part, sought to drag the prime minister into the controversy and said that the FIR against him only proves that Modi has accepted that he is in direct confrontation with the AAP chief.
"Mujhe Khushi hai ki apne sweekar kiya ki aapki ladai sidhe mujhse hai (I am happy you have accepted that your direct confrontation is with me)," Kejriwal said in a tweet.