The Central Bureau of Investigation (CBI) on Friday (August 19) raided 21 locations including the residence of Deputy Chief Minister of Delhi, Manish Sisodia. The raids were conducted in connection with corruption in Delhi government's now withdrawn Delhi Excise Policy 2021-22.
What is the case? It all began on July 8 when the Delhi Chief Secretary Naresh Kumar submitted a report to the Lt Governor of Delhi Vinai Kumar Saxena, highlighting the irregularities in the implementation of the new Delhi excise policy. A copy of the report was also sent to Sisodia and Delhi CM Arvind Kejriwal.
What was the new excise policy? The Delhi government's new excise policy came into effect in 2021. The new policy paved the way for private vends to sell liquor in the national capital. The policy marked the end of Delhi government from liquor sale.
What went wrong? According to the report submitted to the LG and CM, Sisodia made certain changes in the policy without the approval of L-G. One of the major changes was the waiver of Rs 144.36 crore on tendered license fee on account of Covid-19 pandemic, Indian Express reported. The report also alleged that Sisodia gave benefits to liquor licensees by revising the rates of foreign liquor and also removing the levy of import pass free of Rs 50 per beer. This made foreign liquor and beer cheaper for the retail market but it also incurred loss to the state exchequer.
But, as per law, if any changes are made in the excise policy, they have to be placed before the cabinet by the excise department and also forwarded to the L-G for the final approval. Any changes that are made without the approval of LG and cabinet are illegal and in violation of Delhi Excise Rules, 2010 and Transaction of Business Rules, 1993.
Not just CBI: Along with CBI, the Economic Offenses Wing (ECW) of Delhi Police was also informed by the Chief Secretary of the "illegalities, cartelisation and monopolies" in the liquor trade and he had asked them to investigate the matter. The ECW is also conducting its investigation in the case.
How did the policy work? The government made around Rs 8,917 crore through bidding against the reserve price of 7,041 crore. However, the roll out wasn't smooth as expected. Corruption and favouritism allegations led to withdrawal of the policy after eight months.