Why The Delhi Court Pulled Up CBI's 'South Group' Labelling As 'Unwarranted' In Excise Policy Case
The court referred to the US Court of Appeals decision in United States v. Cabrera (2000), where convictions were overturned due to repeated identity-based references.
Published : February 28, 2026 at 5:40 PM IST
New Delhi: The Rouse Avenue Court, in its order pronounced on February 27, has found that the Central Bureau of Investigation failed to establish any criminal conspiracy or illegal gratification in the Delhi excise policy case, holding that the prosecution's narrative was unsupported by evidence and riddled with contradictions. Discharging all 23 accused, including former Delhi Chief Minister Arvind Kejriwal, former Deputy Chief Minister Manish Sisodia, and BRS leader K. Kavitha, the court recorded serious concerns over the manner of investigation, rejected the prosecution's reliance on the so-called 'South Group".
South Group Label Comes Under Fire
A central feature of the prosecution's narrative, the so-called "South Group", was decisively rejected by the court. The judgment held that region-based identity labelling has no place in criminal jurisprudence, particularly when it bears no nexus to the alleged offence. It was observed that no equivalent descriptors, such as a "North Group" were ever used, rendering the terminology arbitrary and unwarranted.
According to the CBI's chargesheet, the "South Group" was allegedly headed by K. Kavitha (A 17), daughter of former Telangana CM K Chandrashekar Rao and comprised:
- Abhishek Boinpally (A-4)
- Arun Ramchandra Pillai (A-5)
- Mootha Gautam (A-6)
- Butchibabu Gorantla (A-11)
- Sarath Chandra Reddy (A-23)
Several of these individuals were described as chartered accountants or associates. The CBI's prosecution alleged that this group was favoured through the grant of an L-1 licence to Indospirits, with Sameer Mahendru (A-7) projected as a beneficiary, and that illegal gratification of Rs 90–100 crore was negotiated through intermediaries and hawala routes.
The court found that these allegations lacked "foundational facts" and, in the absence of offences under the IPC or the Prevention of Corruption Act, continuation of proceedings would amount to an unwarranted trial.
Reliance on the US Court Ruling
To underline the constitutional impropriety of such labelling, the court referred to the US Court of Appeals decision in United States v. Cabrera (2000), where convictions were overturned due to repeated identity-based references by the prosecution. The principle, the judge emphasised, was categorical: criminal trials must focus on conduct proved by evidence, not the identity or origin of the accused.
Constitutional Principles at Stake
The court held that the persistent use of identity-based descriptors violated the guarantees of equality, non-discrimination, and fair procedure under Articles 15 and 21 of the Constitution. Such terminology, it warned, risks colouring perception, introducing bias, and undermining the fairness of the criminal process.
Court Recommends Action Against Investigating Officer
Special Judge Jitendra Singh recommended departmental proceedings against the investigating officer, holding that the chargesheet suffered from glaring contradictions and lacked foundational facts necessary to sustain a criminal trial.
Taking an exceptional step, the court recommended a departmental inquiry against the investigating officer for arraigning A-1 as an accused without any supporting material. Relying on the Supreme Court's ruling in Gajoo vs State of Uttarakhand (2012), the judge warned that failure to fix accountability would erode public confidence in the criminal justice system and amount to tacit judicial approval of investigative impropriety.
The order also serves as a broader judicial warning against investigative overreach, signalling that language, neutrality, and constitutional discipline are integral to criminal justice.
The court found that despite thousands of pages of material placed on record, the prosecution failed to establish criminal conspiracy or illegal gratification. Documents relied upon by the CBI did not align with witness statements, and allegations were found to be internally inconsistent.
The judge noted that Manish Sisodia spent nearly 530 days in jail, while Arvind Kejriwal remained in custody for 156 days across two spells, before securing bail from the Supreme Court in September 2024. The prolonged incarceration, the court implied, stood in sharp contrast to the evidentiary weakness of the case.
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