In a major jolt to AAP national convenor Arvind Kejriwal, the Delhi High Court on Tuesday stayed the trial court’s order that granted him bail in the now-scrapped excise policy case.

“This Court has decided that the vacation judge did not appropriately appreciate the material on record and the averments of ED. Accordingly, the application is allowed and the operation of the impugned order is stayed,” Justice Sudhir Kumar Jain said.

The Delhi HC took objection to the trial judge’s observation that the entire voluminous material cannot be perused. Such an observation was “totally unjustified and it showed that the trial court has not applied its mind to the material,” the High Court stated.

The Delhi High Court also accepted the ED’s submission that adequate opportunity was not granted to it by the trial judge to argue bail application.

“There was a strong argument that the twin condition of Section 45 PMLA was not deliberated by the vacation judge. This court is of the opinion that Section 45 PMLA has not been properly discussed by the trial court,” the order said.

“Trial court has not dealt with the argument of Section 70 PMLA as well,” the Delhi HC order said, adding that the trial court should not have given any finding which was “opposite to the finding of the High Court.”

“Interim bail was granted for elections. Once the arrest and remand of Kejriwal was declared valid by the coordinate bench, it can’t be said that the personal liberty of the applicant (Kejriwal) was curtailed in violation of the law”, Justice Sudhir Kumar says while reading out from the order.

On June 20, Delhi Chief Minister Arvind Kejriwal was granted bail by the trial court. The next day, on June 21, the ED moved the Delhi High Court challenging the grant of bail to him. In the interim, the central probe agency moved urgent application seeking stay of the impugned order.

On Friday, vacation judge Justice Kumar heard ED’s plea. While reserving judgment in the stay application, the High Court ordered that the impugned order shall remain stayed till the pronouncement of the order.

The Delhi CM then moved the Supreme Court challenging the interim stay granted by the High Court. The matter was heard on Monday (June 25) by a vacation bench headed by Justice Manoj Misra which adjourned the hearing to June 26.

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The apex court, however, orally said that the Delhi High Court’s approach to reserve order on ED’s stay application against Kejriwal’s bail was “a bit unusual.”

It also commented that in the usual course, stay orders are passed “on the spot” immediately after the hearing and are not reserved.

The SC adjourned the hearing saying it does not want to “pre-judge” the issue when the Delhi High Court’s order is awaited.

Kejriwal was granted bail on June 20 by Vacation Judge Niyay Bindu of Rouse Avenue Court.

The Delhi CM was arrested by the ED on March 21. In May, he was granted interim bail by the Supreme Court till June 1 to campaign for his party for 2024 Lok Sabha polls. He surrendered on June 2.

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Arvind Kejriwal to stay in jail, Delhi HC stays lower court’s bail order