An alleged excise scam involving the laundering of Rs 1,100 crore, multiple arrests, and at least 12 chargesheets have brought Delhi a major leadership shift. Atishi, the 43-year-old Aam Aadmi Party (AAP) leader, is set to replace Arvind Kejriwal as the new Chief Minister.
Kejriwal, who has held the office since 2015, resigned following a Supreme Court order that barred him from performing any duties as Chief Minister while he is under probe for the Delhi excise policy case. Today, I come to the people’s court to ask you whether you consider Kejriwal guilty or honest. In two days, I will resign from the CM’s position, and I won’t sit in that chair until the people decide,” he had said.
This comes just months ahead of the upcoming assembly elections. Kejriwal’s successor, Atishi, will be taking oath as the 8th CM of the national capital with her tenure not lasting beyond February next year as the term of the current government in the assembly will end.
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To understand how Atishi is in the Delhi hot seat, we need to take a look at the scam which propelled the massive leadership change, leaving senior leaders like Manish Sisodia, Sanjay Singh, Gopal Rai and Kailash Gahlot out in the cold.The liquor scam: Unfolding allegationsThe alleged excise scam revolves around the Delhi Excise Policy 2021-22, which was initially designed to overhaul the capital’s liquor industry. However, the policy came under scrutiny when Delhi’s Lieutenant Governor, VK Saxena, recommended a Central Bureau of Investigation (CBI) probe, citing gross violations of established procedures.A report by the Delhi Chief Secretary pointed to undue financial benefits awarded to certain liquor licensees, causing significant losses to the public exchequer of upto Rs 580 crore. The Enforcement Directorate has claimed that over ₹1,100 crore was laundered in connection with the alleged Delhi excise scam.
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The man at the centre of these allegations was alleged to be former Deputy CM Manish Sisodia, who was responsible for overseeing the excise department.
Sisodia, who had also been arrested in connection and now out on interim bail, allegedly altered tender conditions after the bidding process to benefit specific liquor cartels. One of the most glaring accusations was the waiver of Rs 144.36 crore in licensing fees, supposedly under the pretext of pandemic-related relief, along with numerous other decisions that allegedly favored certain business groups at the state’s expense.
The ED has also accused the AAP government of funneling Rs 100 crore in kickbacks from the liquor policy scam into AAP’s election campaign for the Goa Assembly elections, deepening the scale of the controversy.
South Group and entry of KCR’s daughter, KavithaA significant part of the investigation has unearthed the involvement of a syndicate known as the “South Group,” composed of high-profile political and business figures who allegedly paid kickbacks to AAP leaders in exchange for control over Delhi’s lucrative liquor trade.
The ED’s investigation has implicated figures like YSR Congress MP Magunta Srinivasulu Reddy, his son Raghava Reddy, former Telangana Chief Minister K. Chandrasekhar Rao’s daughter K. Kavitha, and Sarath Reddy of Aurobindo Pharma. This group allegedly orchestrated a vast cartel that gained influence over Delhi’s liquor distribution network by paying off AAP insiders.
The South Group, along with business magnate Sameer Mahendru, is said to have controlled the liquor business through benami entities and proxies. The ED had arrested several individuals linked to the cartel, further tightening the net around AAP’s political machinery. Among those arrested is Dinesh Arora, a businessman with close ties to Manish Sisodia, who turned approver in the case, significantly boosting the prosecution’s case.
However, majority of the accused have been granted relief by the courts in the last two months.
The Kejriwal arrest and political falloutThe roots of this political crisis in Delhi lie in Kejriwal’s arrest on March 21, when the ED took him into custody in connection with the money laundering case linked to the controversial Delhi Excise Policy 2021-22.
Referred to as ‘kingpin’ by the agencies, Kejriwal had skipped multiple ED summons, to be precise nine. This deepened suspicions that he was central to the alleged liquor scam. However, on May 10, ahead of the Lok Sabha elections, the former CM was granted interim relief by the apex court till June 1.
Troubles only mounted for Kejriwal as he was formally arrested by the CBI, too, on June 26 in the corruption case linked to the alleged scam, focussing on the corruption and bribery charges involved. Finally, on July 12, the Supreme Court granted the former IRS officer interim bail in the ED case, questioning the validity and timing of his arrest by the ED in March. However, the bail in the ED case did not grant much of a relief for Kejriwal, as he remained in custody under the CBI’s separate charges.
Following multiple appeals and rejections in various courts, the top court granted bail to Kejriwal in the CBI case on September 13.
The Aam Aadmi Party, however, remains adamant in its stance that the case is politically motivated and part of the ruling Bharatiya Janata Party (BJP)’s broader strategy to target opposition leaders through central agencies.
The AAP has consistently claimed that the ED’s investigation is a political witch hunt aimed at undermining Kejriwal and his government. Senior AAP leaders, including Atishi, had long speculated that Kejriwal would face arrest, with many warning of its potential repercussions. However, the arrest has brought more than just legal consequences—it has forced the party into a position where it must prepare for leadership change and brace itself for the upcoming elections.
Atishi takes the helmAmidst the swirling allegations and political turmoil, AAP has moved swiftly to appoint Atishi as Delhi’s new Chief Minister. A key figure within the party, known for her transformative work in the education sector, Atishi is stepping into a leadership role at a critical juncture.
She has been highly regarded for handling state affairs and the party at large, especially when the party’s trop brass was facing the ED and CBI heat, jailed for months and are embroiled in legal battles.
Atishi has been a front face of the AAP government ever since the former deputy CM Manish Sisodia was jailed.
She was appointed as the Minister of Education, P.W.D, Culture and Tourism in the Delhi Government in 2023. From 2015-2018, Atishi served as an advisor to Sisodia, mainly on the educational front.
In the Delhi Legislative Assembly elections, which were held in 2020, Atishi was given a ticket from Kalkaji constituency of South Delhi. She defeated BJP’s Dharambir Singh by at least 11,000 votes.