After receiving a complaint alleging cartelisation and the involvement of blacklisted firms in liquor retail, Lieutenant Governor Vinai Kumar Saxena has directed the chief secretary Naresh Kumar to probe "brazen and blatant corruption" by the Delhi government in awarding Retail Zonal Licences under the revamped Excise Policy 2022. The Lieutenant Governor has sought a detailed report within the next 15 days.
This comes after a complaint filed by an organisation of jurists, lawyers and civil society members, the sources said while refusing to divulge the name of the organisation to "protect them from intimidation and harassment".
Top officials said that the Lt Governor has forwarded a complaint by an organisation of jurists, lawyers and civil society members about grave irregularities in award of liquor licences, to the chief secretary for verification and enquiry, and asked that a report be submitted to him and the chief minister within a fortnight.
"The complaint that alleges cartelisation, facilitating monopolies and favouring blacklisted firms, brings out that the same was done in deliberate and premeditated violation of the Delhi Excise Policy 2021-22. The LG will take appropriate action as per law on the basis of the report," officials said.
The complaint brought out irregularities in auction to the entities related to Balaji Group of Companies, Manufacturer and Distributor of Liquor. "Clause 4.1.1 and 4.1.2 of the New Delhi Excise Policy 2021-22 clearly states that no entity shall be allotted more than two zones. However, in complete violation of these clauses, two entities of Balaji Group of Companies, namely, M/s Pixie Enterprises Pvt. Ltd. and M/s Magunta Agro Farms Pvt. Ltd. were awarded Zonal Retail Licenses for Zone 32 and zones 4 and 23 respectively," it said.
"Further, these clauses also prohibit bidding by the entity which has any manufacturing facilities directly or through any sister or related concern. But while Balaji Group of Companies was allotted licenses for three zones by the Delhi government, it has also emerged that the said company is engaged in manufacturing of liquor which is again in violation of several terms and conditions of the tender document," it read.
The complaint said, the second violation is auction to the entities of Indospirit Group-Manufacturer and Distributor of Liquor in which Khao Gali Restaurant Pvt. Ltd., the winning bidder of Zone 2, is owned by the father of Geetika Mahendru, who is the blacklisted promoter of Indospirit Group of Companies.
A part of the Earnest Money Deposit (EMD) furnished by Khao Gali Restaurant Pvt. Ltd. has been provided by Indospirit Group while the other part of the EMD has been provided by Zainab Trading Pvt. Ltd. which is a related party of Pixie Enterprises Pvt. Ltd. and Magunta Agro Farms Pvt. Ltd. of the Balaji Group. These facts clearly prove that Indospirit Group and Balaji Group acted as a cartel to get Zonal Retail License of five zones of Delhi," it claimed.
"The third violation is the auction to the entity of Som Distilleries and Breweries Ltd. Manufacturer and Distributor of Liquor, the retail license of Zone 13 was awarded to Raisen Marketing Pvt. Ltd., a related group company of Som Distilleries and Breweries Ltd. It is pertinent to mention here that promoters and shareholders of Raisen Marketing Pvt. Ltd. have been blacklisted by Excise Department of Madhya Pradesh for evasion of excise duty, a fact already in the public domain. Yet, the Kejriwal government awarded the retail license of Zone 13 to Raisen Marketing Pvt. Ltd. in contravention to New Excise Policy of Delhi 2021-22," the complaint further stated.