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Manish Sisodia, who handles multiple departments of the Delhi government including finance, excise and education, was being questioned by the Central agency since morning and the expected arrest came after over eight hours. He is the second Delhi minister to be arrested since Satyendar Jain.
The Aam Aadmi Party said the arrest of Mr Sisodia -- the face of Delhi government's education policy -- is an "attack on the Delhi model of governance". "You (the BJP) didn't get anything from his house or bank accounts. They haven't been able to prove any allegation against him," said AAP's senior leader Atishi at a press conference. The party has also questioned the absence of a money trail.
"Manish is innocent. His arrest is dirty politics. There is a lot of anger among the people due to the arrest of Manish. Everyone is watching. People are understanding everything. People will respond to this. This will boost our spirits further. Our struggle will get stronger," tweeted Mr Sisodia's boss and Delhi Chief Minister Arvind Kejriwal.
Mr Sisodia and others face corruption allegations linked to a liquor sale policy in the national capital. The CBI contends that liquor companies were involved in framing of the 2021 policy, for which kickbacks to the tune of Rs 30 crore were paid by a liquor lobby it dubbed the "South Group".
The policy would have led to a 12 per cent profit for them, of which 6 per cent was routed to public servants through middlemen, the agency claimed. The Enforcement Directorate has also launched an investigation, alleging laundering of the kickbacks. After the policy was scrapped, the BJP said the Delhi government went back to the old liquor policy to cover up the corruption.
Sources said Mr Sisodia was not cooperating with the investigation. He has failed to explain at least six contentious provisions in the liquor policy that were not part of the first draft. The agency, sources said, has the statement of an excise department official who revealed the role of Mr Sisodia in tweaking the drafts. Forensic tests of digital devices have revealed that the provisions came from external sources, sources said.
The BJP has hit out at AAP's claims that the CBI is being misused by the Centre. "Event management can't save AAP from the law," said the BJP's Sambit Patra, questioning why the party chose to withdraw the controversial liquor policy without any explanation when his party questioned it.
"The arrest of Deputy Chief Minister Manish Sisodia by the CBI is a welcome step though Chief Minister Arvind Kejriwal should also be arrested as he was the mastermind," Delhi Congress chief Anil Chaudhary said. The Samajwadi Party and the Trinamool Congress came out in support of AAP. "If @msisodia had got himself a #BJP brand of washing machine, he would never been arrested. Bravo, Manish," tweeted Trinamool's Derek O'Brien.
Calling the case against him "fake", Mr Sisodia had earlier said he was ready for a seven to eight months in jail. "Even if I am in jail for 7-8 months, don't feel sorry for me, be proud," tweeted the leader, who had started the day with a show of strength by his supporters and a visit to Mahatma Gandhi's memorial in Raj Ghat.
The arrest of Mr Sisodia is expected to hit AAP's plans to contest in the elections in Chhattisgarh, Karnataka and Madhya Pradesh due later this year. It could also tie up Mr Kejriwal, the face of the party, to governing Delhi. Mr Sisodia has been handling 18 departments, many of them handed to him after the arrest of Satyendar Jain.
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