On Monday, the Supreme Court granted bail to Vijay Nair, the communications-in-charge of the Aam Aadmi Party (AAP), who is facing charges in a money laundering case connected to the Delhi excise policy scandal.

A Bench of Justices Hrishikesh Roy and SVN Bhatti noted that the Enforcement Directorate (ED) has failed to complete the trial on schedule despite earlier assurances to the Court. They highlighted that approximately 350 witnesses still need to be examined.

"When the case of Manish Sisodia was taken by this court, the assurance was given by ED that trial would be concluded within 6 to 8 months but as can be seen that trial is yet to commence. While assurance was given by ED on 30/10/23 on early conclusion of trial within 6 to 8 months, it is seen that as many as 40 persons have been arrayed as accused. The prosecution seeks to examine around 350 witnesses," the Court observed.

The Court further observed that Nair has been in custody for 23 months and emphasized that the trial should not serve as a form of punishment. It underscored that bail is the rule and incarceration is the exception.

"In the case at hand, the petitioner is in custody for 23 months and his incarceration as undertrial cannot be a mode of punishment without trial being commenced. The universal rule of bail being rule and jail being exception will be defeated if the petitioner is kept incarcerated without trial being started," the Court stated.

The Court emphasized that the right to liberty under Article 21 is a fundamental and sacred right that must be upheld even when stringent provisions of special laws such as the Prevention of Money Laundering Act (PMLA) are applied. Additionally, the Court considered its previous bail orders in the cases of Manish Sisodia and K Kavitha, who are also accused in the same matter.

"We have perused the reasoning the judgment granting bail to Manish Sisodia. In the said proceedings, the court had reiterated right of an accused to speedy trial under Article 21 and also the fact that the fundamental rights guaranteed under Article 21 cannot be subjugated to statutory power under PMLA," the bench said.

Accordingly, the Court ordered that Nair be released on bail under the same conditions applied in the bail orders for Manish Sisodia and K Kavitha.

Nair is one of the accused in a money-laundering case investigated by the Enforcement Directorate (ED), which is linked to the Delhi excise policy case also under investigation by the Central Bureau of Investigation (CBI). The allegations suggest that Delhi government officials colluded to grant liquor licenses to certain traders in exchange for bribes. The central agencies claim that the excise policy was altered and profit margins adjusted to benefit select traders, who allegedly paid kickbacks in return.

The ED and CBI initiated their investigations following a recommendation from Delhi Lieutenant Governor VK Saxena, based on a report by the Delhi Chief Secretary. Nair is specifically accused of receiving or facilitating the transfer of an alleged ₹100 crore kickback from the 'South group' liquor lobby.

Nair was granted bail in the CBI case in November 2022. However, the Delhi High Court had denied him bail in the ED case in July of the previous year, leading him to approach the Supreme Court through advocate Binisa Mohanty. Senior Advocate Abhishek Manu Singhvi, representing Nair, highlighted that Nair has been in custody for 23 months.

Senior Advocate Abhishek Manu Singhvi argued that since the charges against Nair fall under Sections 3 and 4 of the PMLA, the maximum punishment upon conviction is seven years. He also emphasized that, given that bail had been granted to co-accused Manish Sisodia and K Kavitha, Nair should similarly be afforded relief.

"In light of all of these judgments and pronouncements, my submission is that all the alleged mastermind which ED has said to be there, have all been granted bail. ED says that I am an important player but incarceration without trial is same in all the above cases," he argued.

Additional Solicitor General SV Raju, representing the ED, opposed Nair's bail plea, arguing that the threshold for granting bail under the PMLA is very high as stipulated by Section 45 of the Act. He also attempted to differentiate Nair's case from Kavitha's, noting that Kavitha's bail was granted based on special considerations allowed for women under the proviso to Section 45 PMLA.

Despite these arguments, the Court decided to grant bail to Nair after reviewing the submissions. 

Several leaders from the Aam Aadmi Party (AAP) and Bharat Rashtra Samithi (BRS) have been arrested by the ED in connection with the case, including AAP's Arvind Kejriwal and Manish Sisodia, as well as BRS leader K Kavitha. While Sisodia and Kavitha have been granted bail by the Supreme Court, Kejriwal remains in custody. His bail plea is scheduled for consideration by the Supreme Court on September 5.