New Delhi: Arvind Kejriwal used his position as the chief minister of Delhi to commit a money laundering offence and benefit his party – the Aam Aadmi Party (AAP) – of which he is the national convener, making him and the party liable to be prosecuted, the Enforcement Directorate (ED) said on Friday while defining AAP as a “company” under the Prevention of Money Laundering Act (PMLA).

Terming him not only the brain behind the AAP but also someone who controls its major activities, ED said in its remand note while producing the CM before a court that at the time of the commission of an offence under PMLA in the Delhi excise policy 2021-22, Kejriwal was “in-charge of and responsible for the said ‘company’ i.e. AAP for the conduct of business of AAP”.

“Kejriwal was and is not only the brain behind the AAP but also controls its major activities. He was also one of the founding members and was also involved in the decision-making of the policy as evident from the statements of the witnesses. He is also involved in demand of kickbacks which have inter-alia generated further proceeds of crime,” ED said on Friday in its remand note.

The agency has defined AAP as a “company” under section 70 of the PMLA, which deals with “offences by companies”. Explaining how AAP is a “major beneficiary of the proceeds of crime”, ED remand note says, “part of the proceeds of crime to the tune of cash of ₹45 crore has been utilised in the election campaign of AAP in Goa assembly elections 2022”.

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HT was first to report this fact in January this year that ED has referred to AAP as a beneficiary in its charge sheet against Sanjay Singh.

On how he used his CM post to commit the crime, ED has said, “Taking advantage of the fact that he was also the CM of Delhi, he used the said post to facilitate the offence of money laundering punishable u/s 4 of PMLA by the ‘company’ i.e. AAP and therefore, irrespective of his role and liability for the direct commission of the said offence, he is also vicariously liable for the offence committed by the AAP, being the national convener of the said party and because of his role and active involvement in the day to day affairs and the conduct for the business of AAP.”

Calling him the “kingpin” and “key conspirator”, ED has said Kejriwal, in collusion with ministers of the Delhi government, AAP leaders and other persons, was involved in the conspiracy of formulation of the excise policy 2021-22 to favour certain persons and also involved in the demanding kickbacks from liquor businessmen in exchange of favours.

On AAP’s alleged use of Rs.45 crore kickbacks in Goa assembly elections, ED has also named AAP MLA Durgesh Pathak in its remand note on Friday and has banked on a statement by an AAP candidate to say they got money in cash during the campaign.

“Statements of various persons engaged in the election campaign-related activities by the AAP in Goa have revealed that cash payments were made to them for their work done as survey workers, area managers, assembly managers etc. These persons and activities related to the election campaign were overall managed by Vijay Nair and Durgesh Pathak, AAP, MLA in Delhi,” it said.

“ED says this also shows the dissipation/utilisation of proceeds of crime by the representative of Manish Sisodia in Goa elections. This is also corroborated by one of the Candidates of AAP of Goa elections in 2022 who received funds for election expenses in cash from the AAP volunteers in Goa,” it added.

Linking Kejriwal to this kickback’s generation and use, ED has claimed that at the time of the offence, Kejriwal was “in-charge of and responsible for the said “company” i.e. AAP for the conduct of the business of AAP.

“Therefore, not only the AAP but Kejriwal shall be deemed to be guilty of offences punishable u/s 4 of PMLA and shall be liable to be prosecuted and punished as provided u/s 70 of PMLA,” stated the remand note.

The agency alleged that the money laundering has taken place in the Delhi excise policy “with Kejriwal’s knowledge” and that “he didn’t exercise any timely diligence to prevent such contravention”.

“The said offence of money laundering has taken place with the consent or connivance and or is attributable to Kejriwal, who is the national convenor (of AAP) and is also the chief minister of Delhi,” ED states.

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The agency said the CM has been “intrinsically” involved in the entire conspiracy of the Delhi liquor policy irregularities, referring to his actions involving policy formulation, hatching the conspiracy of kickbacks with the South Group members, and eventually using part of the proceeds of crime in the election campaign of AAP.

“In this manner, it is established that Kejriwal, who is the ultimate in-charge of the AAP was intrinsically involved in the acts of policy formulation, kickback scheme and the final use of the proceeds of crime thus generated, including conspiracy thereof. Therefore, he is also liable for the use of the proceeds of crime of ₹45 crore in the election campaign of the AAP in Goa under section 70(1) of PMLA, 2002, apart from his role in his personal capacity,” ED said.

The CM spent the night at the ED headquarters, but he was not questioned by the probe team and allowed to rest, people familiar with the developments said.

Keeping in mind his diabetes, insulin was also arranged by the ED and his medical check-up was done by doctors at night and in the morning.