New Delhi: The Enforcement Directorate (ED) has obtained approval from Delhi Lieutenant Governor VK Saxena to prosecute former Delhi Chief Minister and Aam Aadmi Party (AAP) leader Arvind Kejriwal in the liquor policy case, media reports said.

The development comes just weeks before the crucial Delhi Assembly elections, where the AAP is striving for a fourth term against a resurgent BJP.

Referring to a November 6 Supreme Court judgment, the ED requested the prosecution sanction under the Prevention of Money Laundering Act (PMLA), 2002, on December 5, reported India Today.

In its letter to the Lieutenant Governor, the ED alleged "a huge level of corruption in framing and implementation" of the excise policy.

The Supreme Court, in its November 6 verdict, ruled that public servants cannot be prosecuted for money laundering without prior government approval as mandated under the Code of Criminal Procedure (CrPC).

Previously, prosecution sanctions were not required for chargesheets filed by the ED, though they were mandatory for other investigative agencies like the Central Bureau of Investigation (CBI) and state police.

Kejriwal was arrested by the ED on March 21 and by the CBI on June 26 in connection with money laundering and corruption charges linked to the alleged excise policy scam.

He was granted bail in both cases by the Supreme Court.

In November, Kejriwal approached the Delhi High Court to challenge a trial court's order taking cognisance of the ED's seventh supplementary chargesheet in the case.

Kejriwal argued in his petition that the court’s action violated the requirement for sanction, as he was a public servant when the alleged offences occurred.

The ED sought time to respond to his plea.

On July 9, the trial court had noted that sufficient material existed to proceed against Kejriwal and took cognisance of the ED's 200-page chargesheet, which named him and the AAP as accused.

AAP rejects claims as political diversion

Calling the move an attempt to distract from allegations of insulting BR Ambedkar, AAP leaders challenged the ED to present proof of sanction.

"If the Lt Governor has given permission to prosecute Arvind Kejriwal, then why is the ED not showing the copy of that permission? It is clear that this news is false and misleading. Stop making false claims to divert attention from the issue of insult to Baba Saheb," former Delhi minister and AAP leader Manish Sisodia was quoted as saying by India Today.

AAP's chief spokesperson Priyanka Kakkar echoed the sentiment, stating, "LG Saxena has not given any sanction to the ED to prosecute Kejriwal. This is false news. If sanction has been given to the ED, then show its copy."