Explained: All you need to know about the Delhi liquor policy case

The Central Bureau of Investigation came knocking on Delhi Chief Minister Arvind Kejriwal's door in the liquor policy case that has ravaged the Delhi government for months now. Former Deputy Chief Minister Manish Sisodia was arrested in February in the excise case over allegations of corruption in the formulation and implementation of the liquor policy for 2021-22. Sisodia held the excise portfolio and several other ministries in the Delhi government. Kejriwal was questioned by the CBI for over nine hours on Sunday. He was accompanied by Punjab Chief Minister Bhagwant Mann and other party leaders. After the questioning got over, Kejriwal said that the probe agency does not have any bit of evidence against the Aam Aadmi Party government that "it has committed any wrong in the framing of now scrapped new excise policy."

What is the Delhi Excise policy case?

The Excise policy was framed on the recommendations of an expert committee and came into force on November 17, 2021. The policy was aimed at increasing government revenues and also ending the liquor mafia’s influence and black marketing. Under the new policy, open bidding was conducted for 849 liquor vends which were awarded to private companies. The city was divided into 32 zones, each allotted a maximum of 27 vends. There were no individual licences and the bidding was done zone-by-zone.

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The city government's role in the liquor business ended with the new excise policy. The government was left with no control over the sale of liquor in the capital. While the government said the policy would lead to equal distribution of liquor vends in the city, several social, educational and religious groups weren't happy with it. That it was implemented in the middle of the second Covid wave made things worse for the Delhi government. The policy was rolled back in July 2022 and the old liquor policy came into force once again.

What is the controversy?

The controversy over the liquor policy started when allegations started swirling that the AAP government used the policy to extend undue financial favours to the liquor licensees, much after the tenders had been awarded, thus causing huge losses to the exchequer. The CBI is probing allegations that the liquor policy gave undue advantages to private retailers. The CBI also says that corruption in the matter goes to the "highest levels" in Kejriwal's government. It has claimed crores in kickbacks were paid for favours in the policy and the funds were used by the AAP for its election campaign in Goa last year.

A July 8 report by the Chief Secretary of Delhi last year also showed prima facie violations of the GNCTD Act 1991, Transaction of Business Rules (ToBR) 1993, Delhi Excise Act 2009 and Delhi Excise Rules 2010.

Following the report, Delhi Lieutenant Governor VK Saxena ordered a probe into the Delhi Excise Policy 2021-22. He recommended a CBI probe on July 22, 2022, into the alleged rule violations and other wrongdoings in the implementation of the excise policy.

Manish Sisodia's arrest

The above report alleged that “Minister In-charge of the Excise Department, Manish Sisodia, took and got executed, major decisions/actions”, which were “in violation of the statutory provisions and the notified Excise Policy that had huge financial implications.”

“It was done so with the sole aim of benefitting private liquor barons in lieu of financial benefits to individuals at the highest echelons of the government leading up to the Minister-in-charge of Excise & Finance, Manish Sisodia,” the report said.

In August, the CBI registered an FIR in a special court that mentioned crores were allegedly paid to close associates of Sisodia by Sameer Mahendru, the owner of Indospirits. The liquor trader had been actively involved in irregularities in the framing and implementation of the excise policy.

Former Deputy CM Manish Sisodia's arrest has been the most high-profile arrest in the matter to date. His judicial custody was extended till May 1 on Monday in the now-scrapped excise policy. Sisodia was produced physically on Monday before the Court from Tihar Jail after the end of his judicial custody period. Earlier on April 3, the same court extended Sisodia`s judicial custody till April 17. Sisodia was arrested on February 26 by the CBI which is probing alleged irregularities in the framing and implementation of the excise policy of the Government of the National Capital Territory of Delhi. The following month, Sisodia was arrested while still in jail by the Enforcement Directorate which is probing allegations of money laundering in the case.

Kejriwal's questioning

The CBI recorded Kejriwal's statement in connection with the Excise policy case on Sunday and will verify and collate it with the "available evidence". A statement by the CBI said that the Chief Minister of Delhi was issued a notice under section 160 Cr.P.C for his examination in this case. The agency said that is had uncovered fresh evidence in the matter and there are grounds for the CM to be questioned.

"The entire alleged liquor scam is false and is out of bad politics. AAP is 'kattar imaandaar party'. They want to finish AAP but the country's people are with us," Kejriwal said after the questioning.

The Chief Minister added that he has not been summoned again.

(With inputs from agencies)

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