The Delhi High Court on Tuesday upheld its interim stay on a trial court order granting Delhi Chief Minister Arvind Kejriwal regular bail in the liquor policy case.

The High Court said that the lower court “didn’t apply its mind” when granting bail and cited lapses in judgement, including not allowing the prosecution enough time to argue the application and failing to properly discuss conditions for release in the Prevention of Money Laundering Act (PMLA), under which the AAP chief was charged.

“Averments and allegations made in the main petition (in which the prosecution challenged Mr Kejriwal’s bail order) require due consideration…,” the High Court said, declaring the lower court had also failed to “discuss the vicarious liability of Arvind Kejriwal under Section 70 of the PMLA”.

“This court has (therefore) decided that the vacation judge (in the Rouse Avenue Court, Niyay Bindu) did not appropriately appreciate material on record and the averments of ED,” the High Court said.

“Accordingly, the application is allowed and operation of the impugned order is stayed.”

The Supreme Court will hear the Delhi’s CM plea challenging the HC stay on Wednesday.

On Saturday, the Enforcement Directorate (ED) approached the High Court and filed an urgent petition challenging the lower court’s regular bail order, calling it “perverse” and “flawed”.

Kejriwal then moved the Supreme Court against the interim stay. The top court while refusing immediate relief noted it would not be proper for it to intervene when the High Court had reserved its judgement. It also admitted that the High Court’s actions were “unusual”.

The ED had arrested Kejriwal on March 21 over money laundering charges while framing the Delhi liquor policy for 2021-22, which was scrapped after the Lieutenant Governor raised red flags.

The ED has alleged that the money Kejriwal and the AAP received from the liquor sellers, which was around Rs 100 crore, was pumped into the party’s poll campaign in Goa and Punjab.

Both Kejriwal and the AAP have rubbished the charges, alleging political vendetta and claiming that despite months of investigation, the ED has still not found the alleged bribe money.