LG recommends probe into ‘undue financial favours to liquor licensees’ worth crores, in New Delhi

*Paromita Das

An investigation into the contentious Delhi Excise Policy 2021–22 of the Arvind Kejriwal–led Aam Aadmi Party (AAP) administration has been suggested by Delhi Lieutenant Governor VK Saxena based on a report from the Delhi Chief Secretary. The GNCTD Act of 1991, the Transaction of Business Rules (ToBR) of 1993, the Delhi Excise Act of 2009, and the Delhi Excise Rules of 2010 are all allegedly violated, according to the report. According to the report, the liquor mafia also received a benefit worth Rs 144 crores.

Delhi LG orders CBI probe into alleged violation of excise policy

Read @ANI Story | https://t.co/O22nsg1vTa#DelhiExcisePolicy #DelhiLG #Excise #VKSaxena #AAP #ManishSisodia #ArvindKejriwal pic.twitter.com/D1xghAfKvQ

— ANI Digital (@ani_digital) July 22, 2022

“Financial quid pro quo at the top political level, wherein the Minister In-Charge of the Excise Department, Manish Sisodia, took and got executed, major decisions/actions in violation of the statutory provisions and the notified Excise Policy, that had huge financial implications,” according to the Chief Secretary’s report, which was sent to both LG and Chief Minister Arvind Kejriwal.

The report went on to say that Sisodia “also allegedly extended unauthorised financial favours to the liquor licenses much after the tenders had been awarded and caused enormous losses to the exchequer.”

Notably, the COVID-19 pandemic was used as justification for the Excise Department’s decision to waive Rs. 144.36 crores of the tendered license fee for the liquor market only, even as migrants were fleeing the city due to a lack of basic subsistence income, street vendors were struggling to make a living, and all other commercial establishments were in danger of closing.

The report claims that this was done solely to enrich private liquor merchants who were planning to reward those in positions of power, including Manish Sisodia, Minister in Charge of Excise & Finance, financially. This action comes in response to a formal announcement made earlier this month that the Delhi government had extended the licenses of those who sell country booze in the nation’s capital by one month. For the extension, licensees will be required to pay a prorated licensing fee.

The Kejriwal administration’s Delhi Excise Policy 2021–22 has drawn criticism for providing unauthorised financial favors to licensees of alcoholic beverages after bids were called, resulting in significant losses to the exchequer.

The policy was introduced during the Delta wave of the Covid pandemic and went into effect on November 17, last year. Retail licenses were awarded to private bidders for 849 vends spread across the city, divided into 32 zones, which were opposed by civil society, religious organizations, educational institutions, and Parents’ Bodies. The CBI’s investigation into Manish Sisodia, the minister in charge of the excise department, is anticipated in this case.