Sisodia’s role likely to be investigated; Kejriwal cries political vendetta

The Delhi Government’s liquor policy has become a new flashpoint between the Centre  and the AAP Government after Lieutenant Governor Vinai Kumar Saxena on Friday recommended a CBI probe into the “Delhi Excise Policy 2021-22” for alleged violations and “deliberate and gross procedural lapses”.  

The role of Deputy Chief Minister Manish Sisodia is  under scanner as he is holding the charge of the Excise Department and played a major role in formulating a new excise policy 2022. The LG recommendation for a CBI probe said the excise policy led to  “deliberate and gross procedural lapses to provide post tender undue benefits to liquor licensees for the year 2021-22... and causing huge losses to the exchequer”.

Lambasting the LG’s decision, Delhi Chief Minister Arvind Kejriwal said the move to initiate a CBI probe in Delhi’s Excise Policy is part of  political vendetta and described it a completely fake case. He defended Sisodia as a “hardcore” honest man and said he knew it months in advance that Sisodia would be implicated in some case and arrested.

According to sources, the LG recommended a CBI enquiry on the base of  Delhi Chief Secretary’s report filed earlier this month, showing prima facie violations of the GNCTD Act 1991, the Transaction of Business Rules (ToBR)-1993, the Delhi Excise Act-2009 and the Delhi Excise Rules-2010. A copy of the report was also sent to the Chief Minister.

At an online Press briefing, Kejriwal also said he has known Sisodia for 22 years and he is a “hardcore honest” man.

“It is a completely fake case. There is not even an iota of truth in this case,”  Kejriwal said. “This case will not hold in court. Manish is a hardcore honest man and he will walk free,” he said.

Kejriwal alleged the LG’s recommendation is part of a political vendetta against the Aam Aadmi Party and speculated that Sisodia could be arrested soon. “I know he (Sisodia) will be arrested soon. I knew this months ago. The country has a new system now. They decide who to send to jail and then a made-up case is presented,” the Delhi CM said.

Kejriwal compared the AAP to Bhagat Singh and alleged that there was so much similarity between the BJP and  Hindutva ideologue VD Savarkar who wrote apology letters to the British. “You are all Savarkar ki aulaad who fear jail. We are Bhagat Singh ki aulad, we don’t fear jails,” Kejriwal said.

“When he (Sisodia) became Minister, Delhi Government schools were in poor condition. He worked day and night to bring them to the level where a judge’s child and a rickshaw driver’s child sit together to study,” he said.

Meanwhile, Delhi CM  skipped the weekly meeting with the LG on health grounds.  The meeting  was scheduled today at 4 pm at Raj Niwas.  AAP leaders have claimed that the LG too had skipped one such meeting recently. However, Raj Niwas sources refuted the AAP claim that the LG had skipped one such meeting. “He (LG) was in Jaipur that day to attend the Northern Zonal Council Meeting. DCM Manish Sisodia was also there,” Raj Niwas sources added.

Sources said when Chief Secretary Naresh Kumar, who was appointed in April, took notice of loopholes in the excise policy and raised questions,  the illegal decisions taken in the past were attempted to be legalised by getting the stamp of a post facto Cabinet decision on July 14, which in itself, was in violation of the rules and procedures, sources added. 

“The Excise Department gave a waiver of  Rs 144.36 crore to the licensees on the tendered license fee under the excuse of Covid-19 pandemic. It also refunded earnest money of Rs 30 crore to the lowest bidder of the licence of Airport Zone, when it failed to obtain ‘NOC’ from the airport authorities,” sources said.

Officials said even as migrants were leaving the city due to lack of basic subsistence income, street vendors were facing challenge to their livelihood, dhabas, restaurants, hotels, gyms, schools and all other business establishments were facing closure, the Excise Department under direct orders of Sisodia decided to “allow a waiver of Rs 144.36 crore singularly to the liquor cartel, on the tendered license fee under the excuse of Covid-19 pandemic.

 “It is expected that a probe by the CBI in the matter will unearth nefarious game being played at the cost of the people of Delhi and ascertain the quantum of kick-backs received by the Aam Aadmi Party Government and leaders as also the use of this money to influence the Punjab elections,” officials said.

According to sources, the Excise Department vide order dated November 8, 2021 without approval of the competent authority revised the formula of calculation of rates of foreign liquor and removed the levy of import pass fee at the rate of Rs 50 per case on beer. “It was in gross violation of Rule 48(11)(b) of the Delhi Excise Rules, 2010, which clearly stipulates that the successful bidder must complete all formalities for grant of license failing which all deposits made by him shall stand forfeited to the government,”  sources  said.

Further, the Excise Department in its November 8, 2021 order revised the formula of  calculation of rates of foreign liquor and removed the levy of import pass fee of Rs 50 per case on beer “without approval of the competent authority” making it cheaper for retailers causing loss of revenue to the State exchequer, it said.

The “lapses” in awarding license for liquor vends were also reported by the Chief Secretary and the Excise Department also relaxed provisions of the tender document to provide undue financial favours to the retailers, instead of acting against them for default in payment of license fee, interest and penalty for non-genuine reasons, sources said. The LG has found “substantive indications” of “financial quid pro quo” at the “top political level” wherein the Excise Minister “took and got executed major decisions in violation of the statutory provisions” and notified the Excise Policy that had “huge financial implications”, sources said. “He ( Sisodia) also extended undue financial favours to the liquor licensees much after the tenders had been awarded and thus caused huge losses to the exchequer,” sources said

Some of the decisions taken by Sisodia were also red-flagged by the then LG on being taken without the approval of Delhi Cabinet, they added.  “The illegal decisions taken in the past were attempted to be legalised by getting the stamp of a post facto Cabinet decision as recently as on July 14, which in itself was in violation of laid down rules and procedures,” they claimed.

The new Excise policy 2021-22 was implemented from November 17 last year under which retail licences were given to private bidders for 849 vends across the city divided into 32 zones.

Many liquor stores failed to open for being located in non-confirming areas of the city. Several such vends were sealed by the municipal corporations, they said.