The Union home ministry has given the Enforcement Directorate permission to prosecute former Delhi Chief Minister Arvind Kejriwal in the liquor policy case, PTI reported on Wednesday quoting unidentified officials.

Kejriwal has been accused in his personal capacity as well as on account of being the chief of the Aam Aadmi Party.

He was arrested by the Enforcement Directorate on March 21. The central law enforcement agency is investigating allegations of money laundering in the liquor policy case based on a first information report filed by the Central Bureau of Investigation.

Kejriwal was released on bail in September. A week later, he stepped down as the chief minister and was replaced by Aam Aadmi Party leader Atishi.

The two central agencies have alleged that the Aam Aadmi Party government modified Delhi’s now-scrapped liquor policy by increasing the commission for wholesalers from 5% to 12%. This allegedly facilitated the receipt of bribes from wholesalers who had a substantial market share and turnover.

In May, the Enforcement Directorate also alleged that Kejriwal was the “kingpin” and the “key conspirator” in the liquor case.

The ED further claims that the Aam Aadmi Party can be categorised as a “company” under the Prevention of Money Laundering Act because it is defined as an association or a body of individual citizens of India under the Representation of the People Act.

Based on this understanding, Kejriwal was further accused of being “in-charge of and responsible” for the said company when the contentious liquor policy was executed.

In November, the Supreme Court had ruled that the Enforcement Directorate was also required to gain prior sanction like the Central Bureau of Investigation before prosecuting any public servant under the Prevention of Money Laundering Act as specified under section 197(1) of the Criminal Procedure Code.

The judgement was then cited by Kejriwal – who is alleged to have committed the offence in his capacity as the chief minister of Delhi – to challenge the central agency’s chargesheet against him without prior sanction.

The framing of charges against Kejriwal had thus been delayed before a special Prevention of Money Laundering Act court due to the lack of the necessary sanction.

In December, Delhi Lieutenant Governor VK Saxena had recommended that the Enforcement Directorate be allowed to prosecute the Aam Aadmi Party chief.

According to the law, the lieutenant governor is authorised to recommend to the Ministry of Home Affairs or the Union government to approve the prosecution of the chief minister.

The Home Ministry’s approval for prosecution of Kejriwal comes ahead of the Delhi Assembly elections, which will be held in a single phase on February 5. The counting of votes will take place on February 8.

Kejriwal said that he will file nomination papers for the polls from the New Delhi Assembly constituency on Wednesday.