Why the Enforcement Directorate is Investigating AAP Leader Sanjay Singh

The Enforcement Directorate (ED) conducted a search at the residence of senior Aam Aadmi Party (AAP) leader Sanjay Singh in connection with its ongoing money laundering investigation into irregularities associated with the Delhi excise policy for 2021-22. Despite not being directly implicated in the five charge sheets filed by the ED thus far, Singh has remained under the agency's scrutiny.

One of the key aspects of the ED's investigation revolves around restaurateur Dinesh Arora, who had close ties with both Sanjay Singh and former deputy chief minister Manish Sisodia. Arora, who subsequently became an approver for the Central Bureau of Investigation (CBI), was arrested by the ED in July as a central figure in the alleged scam.

The ED asserts that Arora initially met Singh, which ultimately led to his connection with Sisodia during an event at his restaurant, Unplugged Courtyard. In 2020, Singh contacted Arora, expressing the need for funds for the upcoming Delhi assembly elections. Following Singh's request, Arora reached out to various restaurant owners, gathering checks totaling ₹82 lakh, which were handed over to Sisodia for the party's election fund.

As a result of this involvement, Arora developed a personal relationship with Sisodia, who frequented his restaurant. Another businessman, Amit Arora, came into contact with Singh in 2020 through Dinesh Arora. At that time, the Delhi excise policy included criteria based solely on minimum sales, allowing local brands to thrive despite limited market presence. Amit Arora's business, dealing in high-end brands, sought to secure a better position in the Delhi liquor market by amending this policy.

"Dinesh introduced Amit to Vivek Kumar Tyagi, a close associate/team member of Sanjay Singh and Manish Sisodia. In this meeting, Amit Arora, Dinesh, Sarvesh Mishra (aide of Singh), Ajit Tyagi PA to Sanjay Singh, Vivek Tyagi and Sanjay Singh were present. They discussed about Amit’s liquor business and Sanjay Singh told him that if he could accommodate his close men/staff in Amit’s business and that in exchange Sanjay Singh would take Amit to Manish Sisodia for further discussion on the above-mentioned request that Amit had," according to the ED.

Subsequently, Amit, Dinesh Arora, and Sanjay Singh met with Sisodia at his residence, where Sisodia assured changes in the proposed excise policy for 2020-21 to accommodate Amit Arora's request. In return, Vivek Tyagi, an associate of Sanjay Singh, received stakes in Amit Arora's business, Aralias Hospitality. The ED characterizes this exchange as a "quid pro quo" agreement between Amit Arora, Dinesh Arora, Sanjay Singh, and Sisodia.

Despite these discussions, the policy change did not come to fruition, as the 2020-21 policy was not implemented, and the 2019-20 policy was extended.

In May, the ED conducted searches on two aides, Ajit Singh and Sarvesh Mishra, associated with Sanjay Singh. The anti-money laundering probe agency has already filed five charge sheets in the case, including one against former deputy chief minister Manish Sisodia, alleging that the excise policy facilitated cartel formations, awarded excessive wholesale profit margins, and encouraged other illegal activities as part of an alleged conspiracy to extract kickbacks from liquor businesses.

The Delhi government's 2021-22 excise policy aimed to revitalize the liquor business by introducing significant changes, including replacing a sales-volume-based regime with a license fee system for traders. The policy also promised better retail experiences, discounts, and offers for liquor purchases. However, the policy was prematurely scrapped, replaced by the 2020-21 regime, following allegations of irregularities, and amid claims of sabotage by political opponents.

The investigation continues to unravel the complexities surrounding the alleged corruption within the Delhi excise policy and its associated consequences.