• UGI USER
  • Mar 28, 2024
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KEJRIWAL’S ARREST: IS DELHI AWAITING PRESIDENT’S RULE?

Syllabus:

GS 1:

  • Constitution of India —historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Focus:

  • Delhi Chief Minister Arvind Kejriwal was arrested by the Enforcement Directorate (ED) in Delhi Excise policy-linked money laundering case.
Source:- Telengana Navnirman

Overview of Arvind Kejriwal’s Arrest

  • Arrest Details: Arvind Kejriwal, the Chief Minister of Delhi, was arrested by the Enforcement Directorate (ED) over alleged irregularities in Delhi’s excise policy for 2021-22. Kejriwal skipped nine ED summonses before his arrest​​.
  • Charges Against Kejriwal: Accused of using his position to facilitate a liquor scam, the ED labeled him the “kingpin” of the alleged excise scam, involving money laundering activities by the Aam Aadmi Party (AAP)​​.
Prevention of Money Laundering Act, 2002 (PMLA):

  • Legislative Objective:
    • Enacted to combat the criminal act of legitimizing income from illegal sources.
  • Confiscation of Illegally Earned Property:
    • Empowers the Government or public authority to confiscate property obtained from illegally acquired proceeds.
  • Penalties:
    • Offenders can face imprisonment ranging from three to seven years, extending to 10 years for specified offenses.
    • Monetary penalty of Rs. 5 lakhs may also be imposed.

Enforcement Directorate (ED):

  • Mandate:
    • Multi-disciplinary organization tasked with investigating money laundering offenses and violations of foreign exchange laws.
  • Statutory Functions:
    • Enforces the Prevention of Money Laundering Act, 2002 (PMLA) to prevent money laundering and confiscate related property.
    • Administers the Foreign Exchange Management Act, 1999 (FEMA) to regulate foreign trade and payments.
    • Implements the Fugitive Economic Offenders Act, 2018 (FEOA) to deter economic offenders from evading Indian law.
  • Investigative Responsibilities:
    • Conducts investigations into suspected contraventions.
    • Traces assets derived from proceeds of crime.
    • Provisionally attaches property.
    • Ensures prosecution and confiscation of assets by Special court.

Key Features of the Delhi Excise Policy 2021-22:

  • Zonal Bidding System: The city was divided into 32 zones, and firms were invited to bid for licenses on a zone-by-zone basis.
  • Retail Vend Licenses: Licenses for 849 retail vends were issued through open bidding by the Excise department.
  • Change in License Structure: Instead of individual licenses, bidding was conducted for entire zones, altering the licensing structure.
  • Discount Provision: Shops were allowed to offer discounts to retail customers, a departure from previous policies.
  • Reduction in Dry Days: The number of dry days was reduced from 21 to three, allowing for more days of liquor sales.
  • Home Delivery: The policy included provisions for home delivery of liquor, introducing a new avenue for consumer convenience.
  • Proposed Reduction in Drinking Age: The policy proposed lowering the legal drinking age from 25 to 21, although this aspect may not have been implemented.
  • Extended Shop Hours: There was a suggestion to extend shop operating hours until 3 am, although this was not ultimately implemented.

Controversy Surrounding the Delhi Excise Policy 2021-22:

  • Procedural Lapses: The Chief Secretary of Delhi reportedly found procedural lapses and irregularities in the implementation of the new policy.
  • Allegations Against Deputy CM: Deputy CM Sisodia, who oversaw the excise department, was accused of making changes to the policy without the approval of the Lieutenant Governor (L-G).
  • Financial Losses: Arbitrary decisions allegedly led to financial losses estimated at over Rs 580 crore to the exchequer.
  • Kickback Allegations: There were accusations that kickbacks were received by the Delhi government and its leaders from alcohol business owners and operators for preferential treatment.
  • Political Influence: The kickbacks were purportedly used to influence Assembly elections in Punjab and Goa in early 2022.

India’s Response to Remarks on Arvind Kejriwal’s Arrest:

  • Global Scrutiny:
    • Delhi Chief Minister Arvind Kejriwal’s arrest a month before national elections draws increasing global attention.
  • Rejection of Remarks:
    • India strongly objects to comments made by the United States and Germany regarding Kejriwal’s arrest.
  • Sovereignty and Legal Processes:
    • India emphasizes its legal processes are based on an independent judiciary committed to fair outcomes.
  • Diplomatic Protocol:
    • States are urged to respect the sovereignty and internal affairs of others, particularly fellow democracies.
  • US and Germany Comments:
    • The US State Department encourages a fair, transparent, and timely legal process for Kejriwal.
    • Germany expects standards of independence of judiciary and democratic principles to be upheld in Kejriwal’s case.
  • Indian Response:
    • New Delhi protests against Germany’s remarks, viewing them as interference in its judicial process.
    • The US Deputy Chief of Mission is summoned in response to India’s objections.
  • Strategic Importance:
    • The US sees India as a vital strategic and economic partner in balancing against China’s influence.
    • India and Germany share good ties, especially on strategic issues and defense technology.
  • Investigative Actions:
    • India’s Enforcement Directorate (ED) has launched probes into several state chief ministers or their family members.
    • The arrests of Kejriwal and other opposition leaders have raised concerns about political interference, which the government denies.

President’s Rule

Considering the arrest of Arvind Kejriwal, Chief Minister of Delhi, here’s how President’s Rule could hypothetically be declared in Delhi, referencing specific articles and provisions of the Indian Constitution and considering the unique governance structure of Delhi:

Circumstances Under Article 356

  • Contextualizing Kejriwal’s Arrest: If the arrest of Arvind Kejriwal leads to a situation where the governance of Delhi cannot be carried out in accordance with the Constitution, Article 356 could be invoked. This would require a determination that the constitutional machinery in Delhi has failed.

Role of the Lieutenant Governor

  • Given Delhi’s status as a Union Territory with a Legislative Assembly, the Lieutenant Governor (LG) plays a crucial role. The LG could report to the President that due to the arrest of the Chief Minister and potential subsequent political instability, the governance of Delhi is untenable, prompting consideration for President’s Rule.

Parliamentary Approval

  • Application to Delhi’s Context: Following any decision to invoke Article 356, the matter would need to be presented before both houses of Parliament for approval within two months. Given Kejriwal’s central role in Delhi’s governance, his arrest and any resulting governmental paralysis could be grounds for such action, albeit with significant political and legal scrutiny.

Considering Delhi’s Special Status

  • Article 239AA & Kejriwal’s Arrest: The special provisions for Delhi under Article 239AA complicate the direct application of President’s Rule. The arrest of the Chief Minister would necessitate careful consideration of these provisions, ensuring that any action taken respects Delhi’s semi-autonomous governance structure.

Judicial Scrutiny

  • The arrest of a sitting Chief Minister on charges leading to potential imposition of President’s Rule would almost certainly attract judicial review. The Supreme Court’s guidelines from the S.R. Bommai case underscore that such a measure must be a last resort, emphasizing the importance of safeguarding democratic principles.

Exploring Alternatives

  • Before any drastic measure like President’s Rule is considered due to Kejriwal’s arrest, all possible alternatives for restoring normal governance must be exhausted. This includes the potential for the AAP to nominate a new leader or for coalition arrangements to be explored, ensuring continuity of governance.

Impact on Democracy:

  • Erosion of Public Trust: The arrest may erode public trust in the political and legal processes, particularly if perceived as politically motivated.
  • Suppression of Dissent: Seen as part of a broader pattern of suppressing dissenting voices, which is crucial for a healthy democracy.
  • Strengthening of Opposition Unity: It could lead to the unification of opposition parties, which may counterbalance the ruling party’s influence but also polarize the political landscape further​​.
  • International Image: Could impact India’s international image concerning democratic norms, affecting its democratic indices and perceptions globally​​.

Impact on Federalism:

  • Centre-State Relations: Illustrates the tensions between the central government and state governments, especially those run by opposition parties, potentially undermining the cooperative federalism model.
  • Autonomy of State Governments: Raises concerns about the autonomy of state governments in policy-making and governance, with the central government possibly using legal mechanisms to intervene in state affairs​​.
  • Legal Precedents: Sets a contentious legal precedent for the treatment of state leaders, which could be seen as undermining the federal structure by centralizing authority.
  • Policy Paralysis: May lead to policy paralysis in states affected by such arrests, impacting governance and development initiatives at the state level.

While the arrest of Arvind Kejriwal presents a significant political development, the invocation of President’s Rule in Delhi would require a careful and considered approach, respecting both the letter and spirit of the Constitution, and mindful of Delhi’s unique administrative setup. This hypothetical scenario underscores the complexities involved in balancing governance, legal processes, and constitutional safeguards.

Source:

https://www.aljazeera.com/news/2024/3/27/india-rejects-remarks-by-us-germany-on-opposition-leader-kejriwals-arrest

Mains Practice Question:

“Examine the implications of high-profile political arrests on the principles of democracy and federalism in India, with reference to the recent arrest of Arvind Kejriwal. Critically analyze how such events could influence the relationship between the central and state governments, the functioning of state machinery, and the perception of political accountability and rule of law. Discuss the role of judiciary and media in ensuring the balance between governance and individual rights in such scenarios.”