Excise Case Collapses, Court Raps CBI

Rouse Avenue Court discharges Kejriwal, questions ‘South Group’ terminology

February 27, 2026: The Rouse Avenue Court on Friday discharged former Delhi Chief Minister Arvind Kejriwal and 22 others in the CBI’s excise policy case, sharply criticising the agency’s repeated use of the term “South Group” to describe certain accused liquor businessmen. Special Judge Jitender Singh said the label had no foundation in law and was alien to the statutory framework governing criminal liability. He observed that such terminology, based on regional identity, could be perceived as offensive and risked introducing prejudice into criminal proceedings that must remain evidence-based and neutral.

In a detailed order, the court called the selective regional categorisation “arbitrary and unwarranted,” noting that no similar descriptors such as “North Group” were used for other accused. It stressed that criminal trials must focus on actions, not identity, and warned that region-based labelling carries an avoidable undertone capable of colouring perception. Referring to the US case United States v. Cabrera (2000), the court underlined that ethnicity or origin is irrelevant to proving criminal charges and that justice must remain insulated from extraneous considerations.

The case related to alleged irregularities in Delhi’s 2021–22 excise policy, in which the CBI and the Enforcement Directorate accused liquor businessmen and AAP leaders of kickbacks and money laundering. Among those named was K Kavitha, who was later granted bail and also discharged. The court found “no material at all” against the accused and flagged serious lacunae in the chargesheet, cautioning against reliance on approvers to fill investigative gaps. The CBI has decided to challenge the order in the Delhi High Court.