Supreme Court granted bail Mr. Arvind Kejriwal in CBI case in connection with the alleged liquor excise policy case.

Judgment dated 13th September 2024

Cause title : ARVIND KEJRIWAL VS CENTRAL BUREAU OF INVESTIGATION

Case No: SLP(Crl) No. 11023/2024

A Bench of Supreme Court Judges Hon'ble Mr. JUSTICE SURYA KANT and Hon'ble JUSTICE UJJAL BHUYAN granted bail to Mr. Arvind Kejriwal in CBI Case in connection with the alleged liquor excise policy case. Ujjal Bhuyan in his separate judgment made observation on the CBI and said that Kejriwal's arrest by the agency after her secured bail in the ED case was only to frustrate Kejriwal's release from prison.

Facts of the case are:

Central Bureau of Investigation registered an FIR No. RC0032022A0053 on 17.08.2022 under Sections 120B read with Section 477A of the Indian Penal Code, 1806 and Section 7 of the Prevention of Corruption Act, 1988 against various persons. The FIR alleged irregularities, falsification, undue advantage, and a conspiracy among the persons holding positions of responsibility within the GNCTD, in framing and implementing the Excise Policy for the year 2021-2022. However, Mr. Arvind Kejriwal's name did not figure in the FIR.

On 21.03.2024, the Directorate of Enforcement, arrested the Mr. Arvind Kejriwal in the purported exercise of its power under Section 19 of the Prevention of Money Laundering Act, 2002. Subsequently, Supreme Court granted Mr. Arvind Kejriwal interim bail on 10.05.2024, until 01.06.2024. Mr. Arvind Kejriwal surrendered thereafter before the jail authorities on 02.06.2024.

The Special Judge vide order dated 20.06.2024 granted Mr. Arvind Kejriwal regular bail while his bail in the ED matter was pending before Supreme Court and reserved for judgement. However, the ED swiftly sought the cancellation of that bail order. The High Court on 21.06.2024 stayed the operation of that order, as a result of which, Mr. Arvind Kejriwal continued to remain in jail.

CBI moved an application on 24.06.2024 before the Special Judge (PC Act) under Section 41A of the CrPC, seeking to interrogate Mr. Arvind Kejriwal, which was thereupon allowed. Having completed interrogation and examination, the CBI filed an application on 25.06.2024 seeking permission to arrest Mr. Arvind Kejriwal and for the issuance of production warrants. Thereafter, the Trial Court allowed the CBI's application noting that the accused was already in judicial custody in the ED matter. In the meantime, the High Court conclusively stayed the order granting regular bail to Mr. Arvind Kejriwal in the ED matter on 25.06.2024 itself.

Shortly thereafter, on 26.06.2024, Mr. Arvind Kejriwal was produced before the Trial Court, whereupon he was arrested in the CBI case and a copy of the arrest memo was handed over to the Mr. Arvind Kejriwal's counsel. On the same day, on an application moved by the CBI, the Trial Court remanded Mr. Arvind Kejriwal to police custody for five days. Subsequently, on 29.06.2024, the Trial Court remanded Mr. Arvind Kejriwal to judicial custody till 12.07.2024. It may be noted that the investigation at that time was ongoing.

Both the above stated orders dated 26.06.2024 and 29.06.2024 of the Trial Court, came to be challenged by Mr. Arvind Kejriwal before the High Court vide a Writ Petition, inter alia seeking a declaration that his arrest was illegal. On 02.07.2024, when the Petition was heard, the High Court issued notice to the CBI and scheduled the matter to be heard on 17.07.2024. In the interregnum, Mr. Arvind Kejriwal also approached the High Court under Section 439 CrPC, seeking regular bail in connection with the subject FIR. On 05.07.2024, when the Bail Application came up for hearing, the High Court issued notice and renotified it to be heard on 17.07.2024, along with the Writ Petition challenging the very arrest of Mr. Arvind Kejriwal.

The High Court extensively heard the matter on 17.07.2024 and reserved judgement in the Writ Petition. The Bail Application was renotified for further hearing on 29.07.2024, which was also reserved. Finally, on 05.08.2024, the High Court vide the impugned judgement and order upheld the arrest of Mr. Arvind Kejriwal by the CBI and congruously denied him regular bail, with liberty to approach the Trial Court for such relief.

As regard to the legality of Mr. Arvind Kejriwal's arrest, the High Court upheld the same on the following broad points:

(i) The five circumstances delineated under Section 41(1)(b) of the CrPC apply only to arrests made without a warrant and does not pertain to arrests made under the aegis of Section 41(2) of the CrPC, which is an arrest upon the order of a court;

(ii) The arrest was made in accordance with Section 41(2) of the CrPC;

and (iii) The plea of non-compliance with Section 41A of the CrPC was totally unsubstantiated.

As regard to Mr. Arvind Kejriwal's prayer for regular bail, the High Court has denied the same for the following reasons: (i) The complexity of the facts and material on record necessitated a more comprehensive determination of the Mr. Arvind Kejriwal's role in the alleged conspiracy so as to assess his entitlement to bail; and (ii) The Bail Application had been filed prior to the chargesheet being submitted, and since the chargesheet has now been filed before the Trial Court, Mr. Arvind Kejriwal was directed to first approach the Court of the Sessions Judge.

Mr. Arvind Kejriwal filed appeal before the Hon'bel Supreme Court challenging the legality and propriety of his arrest by the CBI and prayed for release on regular bail in connection with the proceedings initiated by the CBI via the subject FIR.

Some observations of Hon'ble Justice Ujjal Bhuyan in the Judgement passed by the Hon'ble Supreme Court:
22. In so far arrest of the appellant by the CBI is concerned, it raises more questions than it seeks to answer. As already noted above, CBI case was registered on 17.08.2022. Till the arrest of the appellant by the ED on 21.03.2024, CBI did not feel the necessity to arrest the appellant though it had interrogated him about a year back on 16.04.2023. It appears that only after the learned Special Judge granted regular bail to the appellant in the ED case on 20.06.2024 (which was stayed by the High Court on 21.06.2024 on oral mentioning) that CBI became active and sought for custody of the appellant which was granted by the learned Special Judge on 26.06.2024. Even on the date of his arrest by the CBI on 26.06.2024, appellant was not named as an accused by the CBI. Only in the last chargesheet filed by the CBI on 29.07.2024, appellant has been named as an accused.

23. Thus, it is evident that CBI did not feel the need and necessity to arrest the appellant from 17.08.2022 till 26.06.2024 i.e. for over 22 months. It was only after the learned Special Judge granted regular bail to the appellant in the ED case that the CBI activated its machinery and took the appellant into custody. Such action on the part of the CBI raises a serious question mark on the timing of the arrest; rather on the arrest itself. For 22 months, CBI does not arrest the appellant but after the learned Special Judge grants regular bail to the appellant in the ED case, CBI seeks his custody. In the circumstances, a view may be taken that such an arrest by the CBI was perhaps only to frustrate the bail granted to the appellant in the ED case.

24. In so far the grounds of arrest are concerned, I am of the view that those would not satisfy the test of necessity to justify arrest of the appellant and now that the appellant is seeking bail post incarceration, those cannot also be the grounds to deny him bail. The respondent is definitely wrong when it says that because the appellant was evasive in his reply, because he was not cooperating with the investigation, therefore, he was rightly arrested and now should be continued in detention. It cannot be the proposition that only when an accused answers the questions put to him by the investigation agency in the manner in which the investigating agency would like the accused to answer, would mean that the accused is cooperating with the investigation. Further, the respondent cannot justify arrest and continued detention citing evasive reply.

25. We should not forget the cardinal principle under Article 20(3) of the Constitution of India that no person accused of an offence shall be compelled to be a witness against himself. This Court has held that such a protection is available to a person accused of an offence not merely with respect to the evidence that may be given in the court in the course of the trial, but is also available to the accused at a previous stage if an accusation has been made against him which might in the normal course result in his prosecution. Thus, the protection is available to a person against whom a formal accusation has been made, though the actual trial may not have commenced and if such an accusation relates to the commission of an offence which in the normal course may result in prosecution. An accused has the right to remain silent; he cannot be compelled to make inculpatory statements against himself. No adverse inference can be drawn from the silence of the accused. If this is
the position, then the very grounds given for arrest of the appellant would be wholly untenable. On such grounds, it would be a travesty of justice to keep the appellant in further detention in the CBI case, more so, when he has already been granted bail on the same set of allegations under the more stringent provisions of PMLA.

The Hon'ble Supreme Court directed Mr. Arvind Kejriwal be released on bail, subject to the following terms and conditions:

"a. the Appellant is directed to be released on bail in connection with FIR No. RC0032022A0053/2022 registered by the CBI at PS CBI, ACB, upon furnishing bail bonds for a sum of Rs. 10,00,000 /- with two sureties of such like amount, to the satisfaction of the Trial Court;

b. the Appellant shall not make any public comments on the merits of the CBI case, it being sub judice before the Trial Court. This condition is necessitated to dissuade a recent tendency of building a self-serving narrative on public platforms;

c. however, this shall not preclude the Appellant from raising all his contentions before the Trial Court;

d. the terms and conditions imposed by a coordinate bench of this Court vide orders dated 10.05.2024 and 12.07.2024 passed in Criminal Appeal No. 2493/2024, titled Arvind Kejriwal v. Directorate of Enforcement, are imposed mutatis mutandis in the present case;

e. the Appellant shall remain present before the Trial Court on each and every date of hearing, unless granted exemption; and f. the Appellant shall fully cooperate with the Trial Court for expeditious conclusion of the trial proceedings.

Download Judgment dated 13th September 2024 in ARVIND KEJRIWAL VS CENTRAL BUREAU OF INVESTIGATION, SLP(Crl) No. 11023/2024 and 10991 of 2024, Criminal Appeal No. 3816 of 2024 and 3817 of 2024.

 

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