New Delhi/IBNS: The Aam Aadmi Party (AAP) has spent Rs. 45 crores on the election in Goa and there is enough evidence that Delhi Chief Minister Arvind Kejriwal was involved in money laundering, the Enforcement Directorate told the Delhi High Court on Tuesday.

This came hours after the Supreme Court remarked on ED's failure to produce evidence of a money trail and gave bail to senior party leader Sanjay Singh.

The AAP has called the agency's allegation a "lie".

"The ED just lies. The Supreme Court said no money trail was found, and no money was found. The ED could not provide a shred of evidence in the Supreme Court. It is working at the behest of BJP, which wants to topple Delhi government at any cost," read the AAP's statement in Hindi.

This is the first time the central investigation agency made its allegations against Goa official, including it in its response to Kejriwal's challenge to his arrest.

Along with challenging his arrest in the case, Kejriwal has also demanded release as interim relief. The matter would be heard by the court on Wednesday.

Calling AAP the "major beneficiary of the proceeds of crime generated in the Delhi Liquor Scam," the ED claimed, "Part of the proceeds of crime to the tune of cash of Rs. 45 crore approx. has been utilised in the election campaign of AAP in Goa Assembly elections 2022."

The agency also questioned Kejriwal's objections, arguing that he has waived his right to question his detention Tuesday, and cannot now be allowed to argue that it is illegal.

In his plea, the AAP supremo has said that he was arrested by ED despite the fact that they do not have any material in possession that may lead to a belief of his guilt.

The provisions of PMLA are being used to persecute and destroy the fabric of the democratic and federal structures, he said. "The attempt is to decimate a political party and topple an elected government of the NCT of Delhi," the plea read.

Kejriwal was Monday sent to judicial custody till April 15 by the Rouse Avenue Court in connection with the case.

The ED, which had arrested Kejriwal on March 21, had asked for a 15-day judicial custody citing the AAP's "non-cooperative behaviour".

Earlier in the day, the Supreme Court gave bail to senior AAP leader Sanjay Singh, asking why he had been jailed for over six months without a trial or recovery of an alleged bribe of Rs. 2 crore.

The judges questioned the lack of evidence to support ED's claim that the party received ₹ 600 crore in bribes. "Nothing has been recovered... there is no trace (of money allegedly received by the AAP as bribes for allotting liquor licences to the 'South Group')," the judges said.

"The court asked where the money trail was. A search for that money trail has been on for the last two years. Today, when the court asked, the Enforcement Directorate had no answer," Delhi minister and senior AAP leader Atishi told reporters after Sanjay Singh got bail.