1) Lack of Evidence: Special Judge Jitender Singh stated that the Central Bureau of Investigation (CBI) failed to establish a prima facie case and that its allegations were based on "mere conjecture".

2) Criticism of CBI: The court rebuked the CBI for a "shoddy probe" and recommended a departmental inquiry against the investigating officials.

3) Misuse of "Approvers": The judge criticized the agency's heavy reliance on "approvers" (accomplices who turn witness) to fill gaps in the investigation, calling it a violation of constitutional principles.

The case stemmed from a 2022 complaint by Delhi Lieutenant Governor V.K. Saxena, which alleged that the AAP government's liquor policy was designed to:

1) Favor Private Retailers: It was alleged that profit margins for wholesalers were increased from 5% to 12% to facilitate kickbacks.

Kickbacks: The CBI and ED alleged that a "South Group" paid ?100 crore in kickbacks to AAP leaders, which was supposedly used for election campaigning in Goa and Punjab.

2) Revenue Loss: Authorities claimed the policy led to a loss of approximately ?580 crore to the state exchequer.

November 2021: The new excise policy was implemented.