Delhi Court Discharges K. Kavitha, 22 Others in Excise Policy Case; CBI Probe Pulled Up for Lack of Evidence
New Delhi, February 27, 2026: In a major legal development with political ramifications, a Delhi court on Thursday discharged EX-Bharat Rashtra Samithi (BRS) leader and Telangana Jagruthi president K. Kavitha, along with 22 other accused, in the Central Bureau of Investigation (CBI) case related to alleged irregularities in the now-scrapped 2021–22 Delhi excise policy.
Special Judge (Prevention of Corruption Act) Jitendra Singh, presiding over proceedings at the Rouse Avenue Court, declined to take cognisance of the CBI chargesheet and ruled that there was no prima facie case against any of the accused. Among those discharged were former Delhi Chief Minister Arvind Kejriwal, former Deputy Chief Minister Manish Sisodia, and several officials and businesspersons named during the investigation.
Court Finds No Evidence of Conspiracy
In a strongly worded order, the court observed that the prosecution failed to establish any overarching criminal conspiracy or intent in the formulation and implementation of the excise policy. It noted that the chargesheet relied heavily on statements from approvers and lacked independent corroborative evidence. The judge said the allegations appeared to be based more on conjecture than on verifiable material proof.
The court also pointed out significant gaps and inconsistencies in the investigation, stating that there were no reliable witnesses or documentary records to substantiate claims of wrongdoing. In particular, it found no credible evidence supporting the allegation that a so-called “south lobby” paid ₹100 crore in kickbacks to influence policy decisions.
Relief for Kavitha After Prolonged Legal Battle
The ruling brings substantial relief to K. Kavitha, daughter of former Telangana Chief Minister K. Chandrashekar Rao, who had faced prolonged legal scrutiny in connection with the case. She was arrested by the Enforcement Directorate (ED) in March 2024 in a related money-laundering probe and later granted bail by the Supreme Court. Thursday’s order effectively ends the CBI’s corruption case against her and the other accused at the trial court level.
Court Criticises Investigative Approach
The judge also expressed concern over the manner in which individuals, including those holding constitutional positions, were implicated without sufficient supporting material. The order underscored that investigative agencies must ensure charges are grounded in credible evidence before prosecuting public officials.
Background of the Case
The Delhi excise policy case originated from allegations of irregularities, favouritism, and corruption in the 2021–22 liquor policy introduced by the Delhi government. The policy was eventually withdrawn following political backlash and scrutiny. Subsequently, both the CBI and ED initiated parallel probes and filed chargesheets naming multiple political leaders, bureaucrats, and business figures, leading to several high-profile arrests and intense political controversy.
Possible Appeal by CBI
Sources indicate that the CBI is likely to challenge the discharge order before the Delhi High Court. Legal experts note that while the trial court’s decision is a significant setback for the prosecution, the matter could still see further litigation if an appeal is filed.
Political and Legal Significance
The verdict marks a turning point in one of India’s most widely debated corruption investigations in recent years. For the accused leaders and parties involved, it represents a major legal victory. At the same time, it raises broader questions about investigative standards, evidentiary thresholds, and accountability in high-profile corruption cases.
