Delhi's Excise Policy Faces CBI Probe Hiccup. Can AAP Sarkar Manage This Hangover? News18 Decodes New Row
Delhi's Excise Policy Faces CBI Probe Hiccup. Can AAP Sarkar Manage This Hangover? News18 Decodes New Row
The policy stated that no new liquor shops will be opened in Delhi; the government will not run any vend; retail licences would be issued to private bidders for 849 vends across the city which would be divided into 32 zones

It began with an attempt to bump up revenues but a looming CBI probe has taken the fizz out of the Delhi government’s new liquor regime that it had claimed would ‘clean up malpractices’ and improve the experience of individuals while buying alcohol.

On Friday, Delhi’s Lieutenant Governor Vinai Kumar Saxena suggested a probe by the Central Bureau of Investigation (CBI) into the Kejriwal sarkar’s Excise Policy, 2021-22, over alleged violations of rules and procedural lapses. The recommendation came on the chief secretary’s report filed earlier this month which showed prima facie violations of GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009 and Delhi Excise Rules-2010, officials said.

Apart from this there were also “deliberate and gross procedural lapses” to provide post tender “undue benefits to liquor licensees”, said the officials.

As the issue becomes a political slugfest with the role of Deputy Chief Minister Manish Sisodia under the scanner, News18 takes a look at the policy, its aim and criticisms:

What is the Excise Policy, 2021-22?

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.

In its policy document, the Delhi government had claimed that revenue in the Capital was sub-optimal and there was significant potential for revenue augmentation and also providing a decent standard of customer experience commensurate to the stature of the National Capital.

The policy stated that no new liquor shops will be opened in Delhi; the government will not run any vend; retail licences would be issued to private bidders for 849 vends across the city which would be divided into 32 zones. Each zone was divided into 8-10 wards which have around 27 vends. The policy allowed stores to be opened in markets, malls, commercial roads/areas, local shopping complexes and other such places as long as the standard rules and regulations of opening a new shop are followed, particularly Rule 51 of the Delhi Excise Rules. It listed maintaining law and order as being essential to get a renewal of the licence.

The government also made rules flexible for licencees such as allowing them to offer discounts and set their own prices instead of selling on MRP fixed by the government. Following this, discounts were offered by vendors, which attracted crowds. After protests by opposition, the excise department withdrew discounts for some time.

What are the allegations?

According to the chief secretary’s report, Sisodia faces allegations of financial quid pro quo in executing major decisions around the excise policy with reportedly huge financial implications. According to reports, he is accused of extending undue financial favours to liquor licencees after the tenders had been awarded.

The Excise Department reportedly gave a waiver of Rs 144.36 crore to the licencees on the tendered licence fee citing the pandemic as an excuse. A PTI report said it also allegedly refunded earnest money of Rs 30 crore to the lowest bidder of the licence of Airport Zone, despite failing to obtain NOC from the airport authorities. Such a move violated Rule 48(11)(b) of the Delhi Excise Rules, 2010, which stipulate that the successful bidder must complete all formalities for grant of licence, failing which all deposits made by him shall stand forfeited to the government.

Reports further say that under Sisodia, 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 and causing loss of revenue to the state exchequer.

The AAP government is also accused of attempting to legalise “these illegal decisions” 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”.

AAP vs BJP flashpoint

Addressing a press conference, Union minister and BJP leader Meenakshi Lekhi said: “People of Delhi were deceived. The liquor policy was adopted in Delhi illegally. Kejriwal ji should give a logical explanation with all the details.”

She added: “Kejriwal ji should tell that on October 25, 2021, the Excise Department had given notice to those companies, which were given liquor licenses. What was the action taken in this matter? On July 14, 2022, without a cabinet note, a rebate of ₹144.36 crore was given to the same companies without following the law?”

Her colleague, Delhi BJP chief Adesh Gupta, accused the Aam Aadmi Party government of benefiting the liquor mafia.

“First of all, today I want to thank LG sir. Because BJP was also agitating against Delhi’s new liquor policy for a long time, because corruption has happened on a large scale in it. Today it is a matter of great happiness that LG sahib has ordered a CBI inquiry into it. At the time when the new liquor policy was announced, 2.5 per cent commission was given to the liquor contractors, which was increased to 12.5 per cent. The Kejriwal government has done the work of giving 10 per cent benefit directly to the liquor mafia,” he said.

Countering the allegations, the Delhi chief minister reiterated that he had always raised concerns about Sisodia being arrested.

“I have been saying that they will arrest Manish Sisodia. There is a new system in India. They decide who has to be jailed, then a fake case is created against that person. This case is fake. There is no truth in it. We are not scared of jails, not scared of the noose. They have made several cases against our people. The AAP has been growing since its win in Punjab. The AAP’s time has come,” Kejriwal said.

In a controversial retort to the AAP, BJP MP from North-West Delhi Hans Raj Hans said the new excise policy will lead to women drinking more. After the new excise policy, ladies will also drink, it will go till late night.”

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