The Supreme Court has adjourned the plea of Aam Aadmi Party (AAP) MP Sanjay Singh until March 5, in the ongoing legal saga surrounding allegations of money laundering linked to the now-defunct liquor policy in Delhi. Singh, who has been in custody since October following his arrest by the Enforcement Directorate (ED), sought to challenge his arrest and remand on charges related to purported irregularities in the formulation and execution of the policy.

During Monday's hearing, a bench comprising Justices Sanjiv Khanna and Dipankar Datta adjourned the matter, continuing the legal battle initiated by Singh against a Delhi High Court order that declined to quash his arrest. The apex court's decision to extend the hearing until March 5 comes amid a flurry of legal arguments and developments in Singh's case.

Senior Advocate Abhishek Manu Singhvi, representing Singh, raised critical objections against the legality of Singh's arrest by the Enforcement Directorate. Singhvi argued that the arrest lacked validity from its inception, citing provisions under the Prevention of Money Laundering Act, 2002. Notably, Section 19 of the said act mandates stringent requirements for lawful arrests under anti-money laundering legislation, including the necessity to provide written reasons for the belief regarding the individual's involvement in money laundering offenses and informing the arrested individual of the grounds for arrest.

The bench, while agreeing to issue notice on Singh's special leave petition back in November, advised him to file for regular bail. This suggestion aimed to ensure Singh's access to appropriate legal remedies while emphasizing the broader jurisdiction of the court when considering bail applications. Despite this advice, Singh continued to pursue his legal battle, including seeking bail from the Delhi High Court.

Last month, Singh approached the Delhi High Court seeking bail in the money laundering case, with Justice Swarana Kanta Sharma presiding over the matter. The court issued notice in response to Singh's application, prompting further legal proceedings. However, Singh's efforts to secure bail faced a setback when the high court rejected his petition challenging his arrest and remand in connection with the money laundering case.

Justice Sharma emphasized the court's limited scope to interfere with the Enforcement Directorate's investigative processes in the absence of substantial evidence supporting allegations of political motivation behind Singh's arrest. The court underscored the principle of equality before the law, emphasizing Singh's treatment as any other accused in a criminal case.

The backdrop of the controversy lies in the Delhi government's excise policy, which aimed to reform the liquor trade but was later marred by allegations of irregularities, leading to its withdrawal and subsequent investigations. Allegations of a coordinated conspiracy to favor private entities over public interests have surfaced, implicating several individuals, including prominent figures like Manish Sisodia, the former deputy chief minister of Delhi, and now Singh.

Sanjay Singh's arrest by the Enforcement Directorate in October stemmed from accusations by businessman Dinesh Arora, who later turned approver in both ED and Central Bureau of Investigation (CBI) cases. Singh, currently in judicial custody, has consistently denied any wrongdoing, labeling the case as politically motivated.

Case: Sanjay Singh v. Union of India & Anr,

Special Leave Petition (Criminal) No. 14510 of 2023.