The Delhi Government's Excise Policy 2021-22 launched last year to boost revenue and reform liquor trade fell to further disrepute with Friday's CBI raids on Deputy Chief Minister Manish Sisodia's residence in connection with alleged irregularities in its execution.
The policy was withdrawn by the Delhi Government last month, after the Lieutenant Governor (L-G) recommended a CBI probe into the alleged irregularities cited in a report by the chief secretary.
Another report by the vigilance department too highlighted the role of excise officials in implementation of the policy from November 17, 2021, with issuing of licences to 849 liquor vends across the city.
The L-G further recommended the suspension of 11 officials of the Delhi Excise Department, including former Excise Commissioner and IAS officer Arava Gopi Krishna. So far, nine officials have been suspended, while the suspension order of Krishna and a Deputy Commissioner of the department has been sent for MHA approval from the L-G's office, sources said.
According to the letter written by the LG to the CBI, the new excise policy violates the provisions of the GNCTD Act 1991, ToBR, 1993; Delhi Excise Act, 2009 and Delhi Excise Rules, 2010, and to extend post tender undue benefits to the licensee for the year 2021- 2022.
While stating the violations in the letter, the LG wrote, decision taken at the level of the Council of Ministers modifying the Excise Policy without obtaining the opinion of L-G which was mandatory according to the Government of NCT of Delhi Act, 1991.
“The decisions were taken by the Excise Department without the approval of the Competent Authority to extend undue favor to the licensee ‘Post Tender’.
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,” he said.
“The Excise Department in its November 8, 2021 order revised the formula of calculation of rates of foreign liquor and removed levy of import pass fee of Rs 50 per case on beer “without approval of competent authority” making it cheaper for retailers causing loss of revenue to State exchequer,” he said. “The period of L7Z licensees and L1 licensees was extended for two months without taking approval of Competent Authority.
This extension was allowed without any increase in tendered licensee fees perhaps to extend undue benefit to such licensees,” he wrote.
“The Department deferred coercive action against L7Z licensees in case of default in payment of license fee, interest and penalty for non-genuine reasons in relaxation of the provisions of the tender document resulting in undue favor to the L7Z licensees,” the LG wrote.
“The Department floated a tender by incorporating a condition of setting up minimum two liquor vends in each ward without undertaking any exercise and due diligence to ascertain the viability of opening of minimum two vends in each ward. Subsequently, the Department offered the existing licensees to open additional vends in conforming areas in lieu of non-conforming wards without taking approval of the Competent Authority,” Saxena further wrote.
Sisoda had accused former L-G Anil Baijal of changing his stand on the excise policy and blocking liquor vends in non-conforming areas of Delhi by putting a condition. The deputy chief minister claimed this caused losses worth thousands of crores to the Delhi government.
Baijal hit back, saying the allegations levelled on him by Sisodia were an attempt of a "desperate man to save his own skin"