Delhi liquor scam: The enforcement directorate on Wednesday arrested Aam Aadmi Party MP Sanjay Singh in connection with the alleged Delhi liquor scam. A Delhi court has remanded the MP under the agency's custody until October 10. Both ED and CBI have also arrested former deputy Chief Minister of Delhi Manish Sisodia who has been in jail since February this year.
But what is this Liquor policy that has landed the Delhi government in trouble?
Delhi Liquor Policy
The Arvind Kejriwal led Delhi government on November 17, 2021 implemented the Delhi Excise Policy 2021-22. Under the policy, the Delhi government exited totally from the liquor business opening the avenue completely for private players. Delhi was divided into 32 excise zones and retail liquor licenses were issued to private players for 849 vends.
The AAP government further gave certain relaxations to the vendors including permission to offer discounts to consumers to boost sales and to set their own prices irrespective of the MRP of the product. It also allowed home delivery of liquor and shops to stay open till 3 am.
The Delhi government contended that this new policy was adopted to crack down on black marketing and help boost the government revenue, improve the consumer experience and ensure equitable distribution of liquor vends. The government reported a substantial 27% increase in income from the policy, generating around ₹ 8,900 crore.
However, the government was forced to scrap the policy in July after Delhi Lieutenant Governor VK Saxena recommended a CBI inquiry over allegations of irregularities in the policy.
The Allegation
Delhi Chief Secretary Naresh Kumar submitted a report to Delhi Lt Governor and alleged violations of rules and procedural lapses in the formulation and implementation of the Excise Policy 2021-22. The report also accused the then Deputy Chief Minister Manish Sisodia of bending rules and providing undue benefits to liquor vend licensees. As per the report, in return, AAP received kickbacks and commissions. Sisodia also came under scanner because he was holding an excise portfolio in the Delhi cabinet.
Following this report, LT Gov VK Saxena called for a CBI inquiry. The CBI lodged the FIR in the case on August 17 and raided 31 locations across seven states and Union territories on August 19, including the residence of Sisodia in Delhi.
ED's Probe
Separately, the Enforcement Directorate launched a probe alleging money laundering, and claimed a liquor lobby dubbed the "South Group" paid at least ₹ 100 crore in kickbacks to AAP for its Goa election campaign via one of the arrested businessmen. The ED also claimed that the policy caused ₹ 2,800 crore loss to the government.
The ED had spread its wings wide and went as far as to implicate K Kavitha, daughter of Telangana Chief Minister K Chandrashekar Rao.
AAP's Election Campaign Link
Delhi Chief Secretary Naresh Kumar in his report has pointed out that the commissions and Kickbacks from vendors were used extensively for the Punjab Election campaign. While the ED has already claimed AAP's involvement in using the money for Goa elections, in its chargesheet the agency has clearly noted that AAP has been receiving bribes in various ways to fund their election campaigns.
The chargesheet breaks down the connection between AAP MP Sanjay Singh and Dinesh Arora, a middleman and close aide of Sisodia and how AAP funded its Delhi election campaign. Dinesh Arora has told the ED that he met Sanjay Singh during a party in his restaurant Unplugged Courtyard. In 2020, Singh had requested Arora to ask restaurant owners, to generate funds for the AAP for the Delhi assembly elections. Arora further revealed that he was given ₹ 82 lakh cheque for the funds.
Sanjay Singh's Arrest
The ED chargesheet further names another accused Amit Arora, who wanted to move his liquor shop from Okhla to Pitampura. Amit Arora sought the help of Dinesh who later moved things through Sanjay Singh and Manish Sisodia.
Sanjay Singh's arrest comes a day after Dinesh Arora and YSRCP MP Magunta Reddy’s son Raghav Manguta turned approver in the case. According to News18, there are allegations against Singh about the role he played in tweaking the excise policy in lieu of money.
The ED has told a Delhi Court that a businessman had given ₹ 2 crore to Mr Singh and this sum was part of the money trail in Delhi liquor policy case.
Meanwhile, AAP has rebuked all the allegations and has called it a vendetta politics
