ED arrests Manish Sisodia a day before scheduled bail hearing
What's the story
The Enforcement Directorate (ED) arrested Aam Aadmi Party (AAP) leader and former Delhi Deputy Chief Minister Manish Sisodia on Thursday after interrogating him in Tihar Jail in connection with the alleged Delhi Liquor Policy scam.
He was arrested on charges of money laundering after ED's sleuths questioned him for the second time on Thursday after reportedly grilling him for five hours on Tuesday.
Context
Why does this story matter?
Questioning
Sisodia interrogated on evidence destruction, raising wholesale profit margin
Requesting anonymity, officials said that Sisodia is being interrogated on several aspects of the case, with a focus on the "larger conspiracy and money trail."
These include evidence destruction based on allegations that he frequently changed phones, increasing the profit margin for wholesale liquor traders from 5% to 12%, and his aide Vijay Nair allegedly receiving kickbacks on behalf of AAP leaders.
PMLA
Sisodia likely to be charged under Section 19 of PMLA
It was reported during his first session of questioning on Tuesday that the ED could use Section 19 of the Prevention of Money Laundering Act (PMLA) in the case to arrest Sisodia.
The section grants the agency the power to arrest if the investigation officer has "reason to believe" that the accused is guilty of money laundering and is not cooperating with the probe.
Case
Case registered on Delhi L-G's direction
The investigation on AAP leaders was launched in response to Lieutenant Governor (L-G) VK Saxena's order to look into alleged policy corruption.
The agencies allege that a "South Group" paid Rs. 100 crores in kickbacks to the AAP through Sisodia's aide and the AAP's communication in-charge, Vijay Nair, in exchange for undue benefits, which the party used for election campaigning in Punjab and Goa.
Cartel
Purported southern cartel includes TRS, YSRCP leaders, Hyderabad-based businessmen
As per the probe agencies, the southern cartel includes Telangana CM K Chandrashekar Rao's daughter Kalvakuntla Kavitha, her former aide Butchi Babu Gorantla, Telangana Rashtra Samiti's (TRS) founding member Boinpally Hanumantha Rao's son Abhishek Boinpally, Andhra Pradesh's ruling YSR Congress Party MP Magunta Srinivasalu Reddy and his son Magunta Raghava, businessman Arun Pillai, Sarath Reddy of Aurobindo Pharma, and Pernod Ricard official Benoy Babu.