The Delhi High Court on Tuesday allowed the Enforcement Directorate's plea to stay the trial court's bail order for Chief Minister Arvind Kejriwal in the excise policy-linked money laundering case, meaning that the AAP chief will remain in judicial custody.

Pronouncing the order, Justice Sudhir Kumar Jain said the trial court's observation that voluminous material cannot be taken into consideration is "totally unjustified", adding that it is a display of how it did not apply its mind to the material.

The HC observed that the trial court should give enough time and opportunity to the Enforcement Directorate to argue against the bail application.

Justice Sudhir further said that the trial court also did not discuss Section 45 of the Prevention of Money Laundering Act (PMLA) properly.

Opposing the trial court judge's statement about mala fide by the federal probe agency, the HC said it is of the opinion that "a coordinate bench of this court has said that there was no mala fide on the part of the ED", Bar and Bench reported.

Coming down heavily on the trial court, Justice Sudhir said that it "should not have given any finding which is opposite to the finding of the High Court", adding that the trial court also did not deal with the argument of Section 70 of the PMLA.

The single judge bench of the Delhi HC also noted that once it has dismissed Kejriwal's plea challenging his arrest, then it cannot be stated that the Aam Aadmi Party chief's "personal liberty was curtailed in violation of the law".

Noting that a roster bench will consider other arguments, Justice Sudhir said, "Documents and arguments were appreciated properly. Therefore, the impugned order is stayed," Bar and Bench report said.

Arvind Kejriwal was arrested by the Enforcement Directorate in the excise policy-linked money laundering case on March 21. Kejriwal and his party -- AAP -- was accused of receiving kickbacks from the South Group of Rs 100 crore, for rigging the Delhi liquor policy in favour of the licensees.

Notably, Kejriwal was granted bail last week on Thursday by the Rouse Avenue Court. However, that was later stayed by the High Court.

The Delhi CM then moved the Supreme Court to challenge the stay on his bail imposed by the HC. But the top court as well, did not provide any relief to Kejriwal, fixing June 26 for hearing of his plea against the HC order.

The apex court had said that the it will pronounce its order after that of the High Court, otherwise it will be a pre-judging issue, "It's not a subordinate court, it is a High Court," the SC said.

Kejriwal was earlier out on bail for the 2024 Lok Sabha elections campaigns, following which he surrendered back to the national capital's Tihar Jail on June 2, a day after the last day of voting in the seven-phase general elections.

AAP To Move SC Against HC's Stay Order

The Aam Aadmi Party on Tuesday disagreed with the Delhi High Court's order and said that it will challenge it in the Supreme Court.

"We disagree with the Delhi High Court. We will challenge it in the Supreme Court," the party said.

Notably, the bail which was granted to Kejriwal earlier by the trial court was on a personal bond of Rs 1 lakh. The order was then challenged by the ED in the HC the very next day, contending that the trial courts order was "perverse, one-sided and wrong-sided", adding that the findings were based on irrelevant facts.

(With PTI inputs)