#235: UPSC lessons from Kejriwal's arrest

No BS! Only to the point

Sh. Arvind Kejriwal arrested by ED!

Case: Excise Policy (liquor) → Money Laundering

• What's ED & PMLA? • Constitutional crisis & way forward in NCT govt.

Time for 'real' facts👇🏼

1. What's the case?

A quid pro quo where AAP allegedly got 100 cr+ in a quid pro quo which was laundered back!

How? extraordinary profit margins to liquor wholesalers!😮

Result? 580 cr+ loss to exchequer

BRS leader Smt. K Kavitha is also arrested in same case other than Sh. Manish Sisodia

2. ED

• Mandate: Money Laundering & Forex violation

• Power: Can search, seize, arrest, attach property

• Punishments: 3-7-10 yrs imprisonment + fines

• u/ Dept. of Revenue, Finance Ministry

Implements following acts👇🏼

• Fugitive Economic Offenders Act, 2018 (FEOA)
• Foreign Exchange Management Act, 1999 (FEMA)
• Prevention of Money Laundering Act, 2002 (PMLA)
• Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA)

Mr. Kejriwal is arrested u/ PMLA 2002👇🏼

3. PMLA 2002

Enacted 2002, implemented 2005 to combat financial crimes

2012: Banks, Mutual funds & insurance companies u/ preview

2018: Bail provisions toughened w/ add ons

• Court shall believe accused to not be guilty

• No apprehension of accused committing offences on bail

ALSO, 👇🏼

It looks hard for Sh. Kejriwal to get bail.

Why?

u/sec 45 of PMLA

• All offences are cognizable & non-bailable

• No anticipatory bail

This means: Burden of proving innocence on accused

😮

Hm, okay CSEWhy! What next in Govt. of NCT of Delhi? 👇🏼

AAP says: "AK will run govt. from jail"

This is a critical point as LG may write to President:

"Suspend operations u/A 239AA as administration is not possible u/A in this situation"

As a result,

failure of constitutional machinery may lead to President's rule u/A 239AB

With General elections in Delhi ~2 months away,

this is a big development,

both electorally and administratively

Away from the noise, imp. for you to stay up to date on the facts like this thread

Follow @CSEWhy to form an informed opinion! :)

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