From 530 Days in Jail to Full Discharge: The Legal Resurrection of Kejriwal & Sisodia
The conspiracy lost, and the truth won." That is the triumphant message currently exploding across social media as influencers like Coach Varun and Dhruv Rathee break down the court’s stunning discharge of the AAP leadership. But beyond the viral clips and the "I told you so" captions lies a serious judicial critique of India's premier investigative agencies. Why did a case that dominated prime-time news for years fail to produce even a "prima facie" offense? We dive into the legal nuances that turned a "liquor scam" into what many now call a political vendetta.
After Dhruv Rathee one more influencer's #Viral video on #DelhiLiquorScam pic.twitter.com/Kr96LVOpsg
— मंजेश कुमार (@ManjeshKumarPa) March 16, 2026
- Main point right from the start — He says something along the lines of: "Listen carefully — the court has clearly said in its 598-page judgment that there is no evidence of any conspiracy, no money trail, no proceeds of crime." He emphasizes that the judge didn't just give relief; the court completely demolished the prosecution's story.
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He highlights specific court observations (paraphrased in his excited style):
- The prosecution's entire case and evidence have been "discredited in its entirety" (this exact phrase appears in many news reports and the judgment summaries).
- There was no predicate offense (meaning no foundational corruption or criminal act to begin with).
- No proof of money laundering or any illegal financial gain linked to the excise policy.
- The court treated the allegations as based on surmises, conjectures, and inferential leaps rather than solid facts (again, this mirrors language used in court analyses and media).
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He connects it to the bigger narrative:
- This judgment proves the "Delhi Liquor Scam" was never real — it was fabricated to target and jail Kejriwal and AAP leaders.
- He compares it to Dhruv Rathee's earlier video (which called it "India's biggest conspiracy"), saying now even more influencers/content creators are exposing the truth after the court ruling.
- Tone is triumphant: "Sajish haar gayi, sach jeet gaya" (the conspiracy lost, truth won) — a line that echoes many AAP-supportive posts and videos around that time.
- Delivery style — He's speaking fast, with a lot of emphasis, hand gestures (visible in the video), and rising excitement, typical of motivational / explanatory influencers like "Coach" types on YouTube/Instagram/X who simplify legal or political matters for supporters.
What actually happened with AAP leaders. Let's take a look at it.
we must look at the legal journey from the high-profile arrests in 2023–2024 to the landmark discharge of all leaders on February 27, 2026.
1. The Core Allegations (The "Scam" Narrative)
The case began in 2022 when Delhi’s Chief Secretary reported
"procedural lapses" in the 2021-22 Excise Policy.
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Kickbacks: That the policy was designed to give a 12% profit margin to wholesalers, half of which (6%) was allegedly paid back as a ₹100 crore bribe to AAP leaders.
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The "South Group": Allegations that a lobby of businessmen and politicians from South India (including BRS leader K. Kavitha) funded AAP’s Goa election campaign using this "scam" money.
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Procedural Deviations: Claims that Manish Sisodia and others bypassed the Lieutenant Governor (L-G) to favor private players.
2. The Arrests and Legal Struggle (2023–2025)
For nearly two years, AAP's top leadership remained in
custody.
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Manish Sisodia: Arrested in Feb 2023; spent 17 months in jail.
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Sanjay Singh: Arrested in Oct 2023; granted bail in April 2024 after the ED conceded they had no evidence of a money trail directly linking him.
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Arvind Kejriwal: Arrested in March 2024; granted interim bail by the Supreme Court in July 2024, with the Court questioning the "necessity of arrest" just before elections.
3. Why Everyone Was Released: The "Discharge" Order (Feb 2026)
In a major legal turning point on February 27, 2026, the Rouse Avenue Court discharged
Arvind Kejriwal, Manish Sisodia, and 21 others.
Lack of Evidence
The court found that the central investigative agencies failed to prove
a money trail.
Judicial Review of Policy
The court ruled that "policy formulation" is an executive right. Just because a final policy differs from an initial expert committee's recommendation does not make it a "criminal conspiracy." The judge observed that governments are allowed to deliberate and change policies to boost revenue.
"No Prima Facie Case"
A Discharge is legally stronger than Bail. While bail is just a temporary release pending trial, a discharge means the judge looked at the evidence and concluded there wasn't even enough proof to start a trial. The court famously stated it is not a "post office" to simply accept whatever the prosecution says; it must apply its "judicial mind."
4. Current Status (March 2026)
As of March 16, 2026, the CBI has challenged this discharge in the Delhi High
Court.
| Leader | Arrest Date | Release Reason |
| Sanjay Singh | Oct 2023 | Bail (April 2024); Discharged (Feb 2026) |
| Manish Sisodia | Feb 2023 | Bail (Aug 2024); Discharged (Feb 2026) |
| Arvind Kejriwal | Mar 2024 | Bail (Sept 2024); Discharged (Feb 2026) |
Summary for your analysis:
The release of the AAP leaders wasn't just a "lucky break"; it was a result of the prosecution's inability to provide a verifiable money trail after years of investigation. This outcome has significantly boosted AAP’s "honesty" narrative ahead of the 2026 assembly cycles.
Dhruv Rathee: The "Biggest Conspiracy" Narrative
In his recent deep-dive following the February 2026 court ruling, Dhruv Rathee frames the Delhi Excise Policy case as a masterclass in political engineering rather than a legitimate criminal investigation. He argues that for three years, the national narrative was hijacked by sensationalist headlines of a "₹100 crore scam" that simply did not exist in reality. Rathee emphasizes that the CBI and ED relied almost exclusively on the testimony of "approvers"—individuals who were themselves accused and were effectively "coerced" into naming Arvind Kejriwal and Manish Sisodia in exchange for their own freedom. By highlighting the 598-page judgment’s observation that there was "no predicate offense," Rathee positions the entire saga as a targeted attempt to paralyze the Aam Aadmi Party’s top leadership ahead of crucial election cycles.
Furthermore, Rathee connects this case to a broader pattern of "institutional capture," where central agencies are allegedly used as tools for political vendetta. He points out the irony that despite thousands of raids and over 50,000 pages of chargesheets, the investigative agencies could not produce a single rupee of the alleged "bribe money" or a verifiable money trail. His analysis suggests that the true "scam" was the systematic misuse of the PMLA (Prevention of Money Laundering Act) to keep democratically elected leaders in jail without trial, a narrative he reinforces by citing the court's blistering critique that the prosecution's evidence was "discredited in its entirety."
Questioning Nitish Rajput: The Gap Between "Proofs" and Verdicts
While Nitish Rajput is often lauded for his research-based "neutral" explainers, the February 2026 discharge order raises serious questions about the validity of the "proofs" presented in his earlier videos on the liquor policy. In his detailed breakdown of the scam, Rajput meticulously laid out procedural deviations and alleged kickback mechanisms, presenting them as nearly conclusive evidence of wrongdoing. However, now that the Rouse Avenue Court has ruled that these alleged deviations were merely "executive policy decisions" and not a "criminal conspiracy," one must ask: If the evidence was as clear as Rajput’s videos suggested, why did the CBI fail to convince the court of even a prima facie case?
This discrepancy puts a spotlight on Rajput’s neutrality. By focusing heavily on the technical complexities of the 12% profit margin and the "South Group" allegations—narratives primarily fed by agency leaks—his videos may have inadvertently contributed to a "trial by media." When an independent judicial body examines the same set of facts for three years and concludes that there is "zero evidence of a money trail," it suggests that the "proofs" highlighted by creators like Rajput were perhaps contextual nuances rather than criminal facts. It begs the question: Did his analysis prioritize the prosecution’s theories over the fundamental legal principle of "innocent until proven guilty," and does this outcome necessitate a public correction to maintain his standing as a neutral educator?
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