New Delhi— The central government has granted permission to the Enforcement Directorate (ED) to prosecute Delhi Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia in a money laundering case related to the 2021-22 liquor policy.

The decision, according to sources, comes after the Union Home Ministry granted sanction under the Prevention of Money Laundering Act (PMLA). The ED alleges that Kejriwal, as the national convenor of the Aam Aadmi Party (AAP), was ultimately responsible for funds used and generated in the alleged bribery scheme. The agency claims bribes were paid to favor specific liquor traders, benefiting AAP’s Goa election campaign. Sisodia, who served as the Excise Minister during the policy’s drafting, was also arrested in connection with the case.

This development follows a Supreme Court ruling in November that mandated prior sanction for prosecution under the PMLA, similar to the Central Bureau of Investigation (CBI). A special PMLA court in Delhi had paused framing charges against Kejriwal after he challenged the trial court’s authority to proceed without specific PMLA prosecution sanction. Lieutenant Governor V.K. Saxena had previously granted the ED permission to prosecute Kejriwal last month.

The CBI, which has filed a separate corruption case related to the excise policy, received the necessary sanction in August. Both Kejriwal and Sisodia, currently out on bail, have denied the allegations and accused the ruling Bharatiya Janata Party (BJP) of weaponizing investigative agencies for political harassment.

The AAP government under Kejriwal later scrapped the policy. Both leaders are actively campaigning for the upcoming Feb. 5 election in Delhi. Kejriwal is expected to file his nomination on Wednesday from the New Delhi constituency.