Arvind Kejriwal, Manish Sisodia Cleared By Delhi Court in Liquor Policy Case

Arvind Kejriwal, Manish Sisodia cleared by Delhi court in liquor policy case as charges are dropped due to lack of evidence, with CBI planning appeal.

shivani Poli February 27, 2026

114 2 minutes read

Arvind Kejriwal, Manish Sisodia Cleared By Delhi Court in Liquor Policy Case: Verdict, Reactions and What’s Next

On February 27, 2026, a Delhi court delivered a major verdict in the high-profile liquor policy case involving former Delhi Chief Minister Arvind Kejriwal and his deputy Manish Sisodia. The court cleared both leaders of all charges, ruling that the prosecution failed to provide sufficient evidence to substantiate allegations of corruption and conspiracy related to Delhi’s 2021-22 excise policy.

Court Verdict and Key Findings

The Rouse Avenue Court discharged Kejriwal, Sisodia, and all 21 other accused in the case, stating there was no overarching conspiracy or criminal intent in the formulation and implementation of the excise policy. The judge criticized the Central Bureau of Investigation’s (CBI) chargesheet for lacking credible and material evidence, thereby failing to meet the threshold required to proceed with the trial.

This decision marks a significant legal development after a long and politically charged investigation that drew intense national attention.

Background: The Delhi Liquor Policy Case

The case originated from allegations that the Delhi government’s now-scrapped 2021-22 excise policy was designed to favour certain private liquor businesses in exchange for kickbacks. The CBI and the Enforcement Directorate (ED) alleged that the policy increased profit margins and allegedly resulted in undue benefits to select licence holders, potentially causing financial loss to the state exchequer.

Kejriwal was arrested by the ED and spent months in jail due to this investigation, becoming the first sitting chief minister in India to be arrested over this matter. Sisodia also spent significant time in custody before securing bail.

Emotional Response and Political Reactions

Following the verdict, Arvind Kejriwal expressed deep emotion, breaking down during his remarks to the media. He described the clean chit as a “victory of truth” and maintained his innocence throughout the proceedings. Kejriwal asserted that the charges were politically motivated and that justice had ultimately prevailed.

Manish Sisodia, too, welcomed the court decision, and supporters of the Aam Aadmi Party (AAP) hailed the outcome as an affirmation of integrity and due process. Several leaders also criticised the investigation narrative and questioned the motives behind the prolonged probe.

CBI Plans Appeal

Despite the court’s ruling, the CBI has announced its intention to challenge the decision in the Delhi High Court. The agency indicated that certain aspects of the investigation were not fully considered and plans to file an appeal to ensure that the legal process continues.

What This Means Politically

Beyond the legal dimension, this verdict may have significant political implications. Arvind Kejriwal and Manish Sisodia, both leaders of the Aam Aadmi Party, can now reframe narratives around accountability and public trust as the AAP seeks to reclaim momentum in the political arena.

The outcome also raises broader questions about prosecutorial standards and political litigation in cases involving senior public figures. Critics and supporters alike are likely to debate the verdict’s impact on governance, institutional credibility, and voter perceptions ahead of future elections.

What Comes Next

With the court’s judgment formally recorded on February 27, 2026, all charges against Kejriwal, Sisodia, and the other accused are currently dropped. However, the CBI’s pending appeal means that this legal chapter may not be fully concluded until higher courts weigh in.

Legal analysts expect arguments in the Delhi High Court to begin soon, and further hearings may shed more light on evidentiary issues raised in today’s decision.

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