Delhi Excise Scam: Court Grants Bail to Businessman Dinesh Arora

The Rouse Avenue Court on Tuesday, granted bail to businessman Dinesh Arora in connection with an ongoing probe in the Delhi excise policy case.

He was arrested by the ED on July 6 and was in Judicial Custody until now.

The Special Judge MK Nagpal granted bail to Arora upon a personal bail bond of Rs 1 lakh and a like amount surety.

During the custody, ED counsels revealed that Arora was confronted with certain individuals and documents involved in the payment transfer of cash and proceeds of crime.
Further, ED disclosed crucial facts and names of individuals receiving proceeds of crime. Based on the information provided by the accused, ED conducted searches in Delhi and NCR, leading to the recovery of incriminating material.

Arora has been declared an approver in the same case under investigation by the CBI.

Previously, Senior Counsel Vikas Pahwa appeared for Dinesh Arora and stated that he had not seen the grounds of arrest. Pahwa emphasized that it is a peculiar case, and before the pardon was granted on November 16, 2022, ED called him in September.

ED has relied on Arora’s statements in various Prosecution Complaints. Despite Senior Advocate Vikas Pahwa’s submission, this court rejected bail, relying on the accused’s statement.

Arora, considered close to jailed Aam Aadmi Party (AAP) leader Manish Sisodia, is the 13th person arrested in the case by the Enforcement Directorate. Last year, a city court allowed the CBI’s request to make Arora an approver in the case.

ED has filed 5 charge sheets in the case so far, including one against Sisodia. The agency conducted over 200 search operations in this case after filing an FIR based on the Delhi lieutenant governor’s recommendation following the findings of the Delhi chief secretary’s report filed in July.

The report showed prima facie violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009, and Delhi Excise Rules-2010.

In October, ED raided nearly three dozen locations in Delhi and Punjab following the arrest of Sameer Mahendru, Managing Director of Delhi’s Jor Bagh-based liquor distributor Indospirit Group, in the case and arrested him later.

Last week, the CBI also filed its first charge sheet in the case.

Both ED and CBI alleged irregularities in modifying the Excise Policy, extending undue favours to licence holders, waiving or reducing the licence fee, and extending the L-1 licence without competent authority approval. The beneficiaries diverted “illegal” gains to accused officials and made false entries in their books of account to evade detection.

According to the allegations, the Excise Department decided to refund the Earnest Money Deposit of about Rs.30 crore to a successful tenderer against the set rules.

Additionally, a waiver on tendered licence fees was allowed from December 28, 2021, to January 27, 2022, due to COVID-19, despite no enabling provision.

This allegedly caused a loss of Rs 144.36 crore to the exchequer, which has been instituted on a reference from the Union Home Ministry following a recommendation from Delhi Lieutenant-Governor Vinai Kumar Saxena.