Court blocks Delhi chief minister Arvind Kejriwal's bail hours before prison release

Minister accused of corruption over alcohol policy aimed at privatising the state-controlled liquor business in 2021

Chief Minister Arvind Kejriwal is accused of corruption. Reuters

A court on Friday blocked Delhi's Chief Minister Arvind Kejriwal's bail in an alleged corruption case following an urgent hearing by the federal financial crimes police hours before he was set to walk out of prison.

Mr Kejriwal, whose Aam Aadmi Party administers India's capital region, was arrested in March by the Enforcement Directorate on allegations of accepting bribes of about 1 billion rupees ($12 million) to pass an alcohol policy favourable to private businesses.

He was granted bail by a trial court on Thursday and was expected to leave the city's high-security Tihar Jail on Friday. However, the ED approached the Delhi High Court to challenge the bail order hours before his release.

The agency claimed that the trial court's bail order was "flawed" and that the court had not heard their "arguments" or "properly examine the evidence" provided against Mr Kejriwal.

The High Court ruled to put an interim stay on Mr Kejriwal's bail while noting that it will pronounce the verdict on June 25.

"Till the pronouncement of this order, the operation of the impugned order shall remain stayed," the High Court bench said.

Delhi’s Rouse Avenue Court on late Thursday had granted Mr Kejriwal a bail on bond of 100,000 rupees. His bail was on the condition that he would have to appear before the court when required and co-operate with the investigation.

He was granted an interim bail by the Supreme Court on May 10, but had to surrender and went back to jail on June 2.

The Delhi alcohol policy at the heart of the corruption case was aimed at privatising the state-controlled liquor business in 2021. Officials said it was intended to increase revenue and eliminate the black market.

It was cancelled by the government after allegations emerged, with most of the 849 private alcohol shops shutting.

The ED has claimed that Mr Kejriwal is a “kingpin” in the alleged scheme.

During a hearing on Thursday, the agency claimed that it had evidence of Mr Kejriwal demanding one billion rupees as kickbacks in the case from liquor sellers.

But Mr Kejriwal’s lawyer said that the ED’s allegations were not backed by any proof.

The politician has claimed his arrest was “illegal” and carried out at the behest of Prime Minister Narendra Modi, his main political rival.

"Is ED an independent agency or playing in the hands of some political masters? The ED draws all its conclusions based on hypothesis," Vikram Chaudhary, Mr Kejriwal’s lawyer said on Thursday.

Mr Kejriwal had been summoned several times for questioning before his arrest but he had ignored the summons, claiming that they were “illegal”.

The agency has claimed that 450 million rupees of kickbacks were used to fund the AAP in the Goa and Punjab state elections in 2022.

Several politicians, including Mr Kejriwal's party colleagues, such as Delhi Deputy Chief Minister Manish Sisodia, have remained in custody pending trial over the scam.