On 4th April, a Delhi Court sent Vinod Chauhan to the Enforcement Directorate custody in the Delhi Excise Policy Scam case till 7th May. Chauhan is the 18th person arrested in the matter. He is accused of transferring money via the hawala route for the Aam Aadmi Party’s (AAP) Goa elections funds. Chauhan was arrested by the investigating agency on 3rd May for his alleged involvement in the case.
Special counsel Zoheb Hossain appearing for ED sought four days of custody from the court. He informed the court that, “Chauhan had transferred money through the hawala route for AAP’s Goa elections. He was in regular touch with members of the ‘South Group’… was part of a deep nexus with major conspirators such as K Kavitha and certain AAP leaders.”
Hossain further added that during searches at Chauhan’s office, ED recovered Rs 1,06,00,000. Hossain said, “He could not explain its source. He was holding the cash given by the members of the ‘South Group’ for the AAP.”
ED informed the court that Chauhan allegedly transferred proceeds of crime worth Rs 25.5 crore in the matter. The custody was sought to unearth further material in the case.
On the other hand, Chauhan’s counsel said in the court there was no need to send him to custody. He said, “I have always joined the investigation. Why have I been arrested?”, adding that audited statements regarding the cash recovery had already been provided to the agency.
Countering him, Hossain said, “The Rs 1 crore seized was what was left. The rest of the proceeds of crime were already transferred, consumed, and used up.” He added that the responses provided by Chauhan were “vague and unsatisfactory”.
Vinod Chauhan linked to ‘South Group’
Reportedly, Chauhan recieved money to send to AAP from the ‘South Group’. It is a group of individuals from South India. As per ED, it has secured uninhibited access, undue favours, attained stakes in established wholesale businesses, multiple retail zones and paid Rs 100 crores to AAP leaders for the same. BRS leader K Kavitha is part of the South Group. She is currently in judicial custody in Delhi Excise Policy Scam.
Delhi Excise Policy Scam
In November 2021, the AAP-led Delhi Government introduced the Delhi Excise Policy replacing the old excise policy claiming it would benefit Delhi. However, in July 2022, Delhi Chief Secretary Naresh Kumar submitted a report to LG VK Saxena pointing out that there were alleged procedural lapses in the formulation of the Delhi excise policy 2021-22. In the same month, the policy was scrapped.
In his report, Kumar pointed out that Sisodia’s decisions taken in regards to the policy were arbitrary and unilateral leading to financial losses to the exchequer estimated at over Rs 580 crore.
Central Bureau of Investigation initiated a probe into the matter. Later, ED also initiated a separate case. Manish Sisodia and others were arrested in the matter. In March 2024, Delhi Chief Minister Arvind Kejriwal was arrested by ED after he failed to appear in eight consecutive summons by the investigating agencies.
Kejriwal tried escaping the ED summons via court but the court rejected his plea and said he had to appear before the ED. Since then, his custody has been extended multiple times. Currently, AAP is using Kejriwal’s stint in Tihar as a political campaign hoping they would get some votes because a “sitting chief minister” has been jailed.
