ED may name AAP as accused in new Delhi excise policy 'scam' chargesheet: Report

Besides BRS leader K Kavitha and Delhi CM Arvind Kejriwal, Chanpreet Singh is also likely to be named. He was arrested on April 15 and has been accused of managing AAP funds for the Goa Assembly elections.

The Enforcement Directorate is set to file a new prosecution complaint, which is the same as a supplementary chargesheet, in the liquor policy scam against Delhi CM Arvind Kejriwal and the Aam Aadmi Party, possibly before May 15. The central agency will meet the 60-day deadline since the arrest of BRS leader K Kavitha, who was taken in on March 15.

The ED is likely to name 'four or five' accused besides those who have already been named in the case, The Indian Express reported, adding that the chargesheet was in the 'final drafting stage'.

Besides Kavitha and Kejriwal, Chanpreet Singh is also likely to be named. He was arrested on April 15 and has been accused of managing AAP funds for the Goa Assembly elections.

As per the ED, a couple of people allegedly part of hawala transactions, made after AAP allegedly got 'kickbacks', are also likely to be named.

Can ED name AAP in the chargesheet?

The publication reported that while ED feels naming the party is an unprecedented move, the central agency has sound legal backing for the same.

Abhishek Singhvi, senior Supreme Court lawyer, who appeared before the top court for both Manish Sisodia and Arvind Kejriwal, said, "These provisions of PMLA have never been used against a political party in the 20 years of the law’s existence. (If the ED does so), the whole idea is to attach assets, freeze bank accounts, paralyse and decimate a political party. It will be unprecedented for democracy and in the history of the Income Tax and PMLA Acts. It will show that political activity can be emasculated on the ground of alleged financial violations and strategically invoked during elections" while speaking to IE, noting that AAP is a political entity and can't be treated as a company.

Former law minister Kapil Sibal also told the publication "A political party is a statutory body and a composition of people. This would be an inappropriate move and nothing will come out of it. Such a move smacks of malice and will be an act of desperation. It is nothing but an attempt to malign and an absolute misuse of the provisions of Section 70 of the PMLA."

Meanwhile, the ED contends that AAP is a political party which is registered under Section 29-A of the Representation of the People Act, 1951, and since it is also an 'association of individuals', the party falls within the definition of the 'company' as laid out under PMLA's Section 70.

This section in the stringent Act deals with company offences.

Though a political party isn't a company incorporated under the Companies Act, 2013, the ED argues that the Act has a provision to bring a political party within the ambit of the anti-money laundering laws.

As per the ED "under section 2(f) of the Representation of People Act, 1951, a political party is defined as association or body of individual citizens of India registered with the Election Commission of India….the AAP is a political party comprising of association of individuals registered under Section 29-A of Representation of Peoples Act 1951….since AAP is also an association of individuals it would fall within the definition of “company” as contemplated u/s 70 of PMLA", IE reported.