Explained: Delhi’s excise policy that led to Manish Sisodia’s arrest

New Delhi:Why did the Central Bureau of Investigation (CBI) arrest Delhi’s Deputy Chief Minister Manish Sisodia?  After all, what is this ‘liquor scam’ that has created a political storm in the country’s capital and  finally led to his resignation.

Sisodia has been accused of committing irregularities in the old liquor policy for political gains of his Aam Aadmi Party (AAP). He has been accused of providing undue favors to liquor licensees in return for “kickbacks” and “commission” , which was reportedly used by AAP in the Punjab Assembly elections in February 2022.

The story begins from July 2022, when Delhi Chief Secretary Naresh Kumar submitted a report to Lieutenant Governor Vinay Kumar Saxena about these charges against Sisodia.

Earlier, the Economic Offences Wing of the Delhi Police, which reports to the BJP-ruled Centre also took note of the ‘reforms’ in the policy. The Enforcement Directorate (ED) also launched a separate probe into the Delhi liquor scam.

According to the report submitted to the LG and the Chief Minister, Sisodia allegedly made changes in the excise policy without the approval of the LG, such as allowing exemption of Rs 144.36 crore on tender license fee. The report said, “The Excise Department, under the direct orders of Sisodia, decided to give a waiver of Rs 144.36 crore to the liquor cartel alone on the tender license fee, on the pretext of the Covid pandemic.”

Officials said if any changes are made to a policy that has already been implemented, the excise department will have to place them before the cabinet and send them to the lieutenant governor for final approval. Any change made without the approval of the cabinet and the L-G is illegal, and in violation of the Delhi Excise Rules, 2010 and the Trade Rules, 1993.

The report also alleged that Sisodia extended undue favor to liquor licensees by revising the rates of foreign liquor and doing away with the import pass fee of Rs 50 per case of beer. As per reports, this made foreign liquor and beer cheaper for retail, leading to loss of revenue to the exchequer.

But before we go any further let us first know what was the excise policy.

The proposal of this policy came in 2020 and it came into force in November 2021. Delhi was divided into 32 zones, with each zone having 27 liquor vends. Under this policy, the government will have nothing to do with the sale of liquor, only private liquor shops will run in the city, and there will be 2-3 contracts in each municipal ward. Its objective was to eliminate liquor mafia and black marketing, increase revenue and improve consumer experience and ensure equitable distribution of liquor shops.

The government also made rules flexible for licensees, such as allowing them to offer discounts and set their own prices instead of selling at the government-fixed MRP. After this, the shopkeepers offered discounts, due to which the crowd gathered. Following protests from the opposition, the Excise Department withdrew the exemption for some time.

The CBI has named 15 persons in its FIR filed in connection with the Delhi Excise Policy 2021-2022, in which Sisodia is on top. Citing allegations in a memorandum issued by the L-G, the FIR states that Sisodia, Delhi’s then Excise Commissioner Arva Gopi Krishna, and two other senior Excise Department officials had “played a key role in making recommendations and decisions relating to the policy.

There is another allegation against Sisodia. The CBI is probing the deputy CM in a case related to alleged setting up of a ‘feedback unit’ to collect political intelligence against AAP’s political opponents. On 22 February, the Ministry of Home Affairs (MHA) sanctioned prosecution of him under the Prevention of Corruption Act in connection with the case.

The political war between the AAP and the ruling Bharatiya Janata Party (BJP) has escalated after Sisodia’s arrest.  Delhi Chief Minister Arvind Kejriwal said, “He is innocent…this is dirty politics”. . He tweeted and said, ‘There is a lot of anger among the people due to the arrest of Manish. Everyone is watching. The public is understanding everything. People will respond to it.”

Sisodia was arrested on Sunday after nearly eight hours of questioning. He was questioned about various aspects of the excise policy, his alleged links with Dinesh Arora and other accused named in the FIR, and details of exchange of messages from several phones.

CBI officials said the arrests were made after the deputy CM did not cooperate with the probe and avoided the clarifications sought by him.

Aam Aadmi Party (AAP) MLA Saurabh Bhardwaj said, ‘CBI is completely at the behest of the Centre. We always knew that Manish Sisodia would be arrested.

Meanwhile, in a set back to Sisodia, the Supreme Court on Tuesday refused to entertain his  plea by challenging his arrest. The court told him to approach a lower court or High Court. – INDIA NEWS STREAM