Delhi excise policy case: ED raids four locations in Punjab

Enforcement Directorate raid underway at Faridkot premises of region’s liquor baron Deep Malhotra, a former Shiromani Akali Dal MLA

The Enforcement Directorate (ED) on Friday carried out searches at nearly three dozen locations in Delhi and Punjab in connection with the Delhi Excise Policy 2021-22 case.

Two premises belonging to liquor baron Deep Malhotra, a former Shiromani Akali Dal MLA, were raided by the Enforcement Directorate in Faridkot on Friday in connection with the Delhi excise policy case. (HT file photo)

ED officials confirmed four raids in Punjab, including the Faridkot premises of liquor baron and former Shiromani Akali Dal MLA Deep Malhotra.

The raids are being conducted days after the central agency arrested Sameer Mahendru, the managing director of Delhi’s Jor Bagh-based liquor distributor Indospirit Group.

Among the accused in the case are Aam Aadmi Party (AAP) leader and Delhi deputy chief minister Manish Sisodia, the then excise commissioner Arva Gopi Krishna, deputy commissioner Anand Tiwari and assistant commissioner Pankaj Bhatnagar. Other accused are Manoj Rai, a former employee of Pernod Ricard; Amandeep Dhal, director of Brindco Sales; director of Buddy Retail Amit Arora, and Dinesh Arora; authorised signatories of Mahadev Liquors Sunny Marwah, Arun Ramchandra Pillai and Arjun Pandey.

The ED officials said that two premises of Malhotra in Faridkot district and liquor firm Brindco in Ludhiana and Mansa are being searched under money-laundering charges.

Malhotra dominates the liquor business in the region.

The ED and Central Bureau of Investigation (CBI) had alleged that irregularities were committed while modifying the excise policy, undue favours were extended to licence holders, the licence fee was waived or reduced and the L-1 licence was extended without the competent authority’s approval. The beneficiaries diverted “illegal” gains to the accused officials and made false entries in their books of account to evade detection.

As alleged, the excise department had decided to refund the earnest money deposit of about ₹30 crore to a successful bidder against rules. Though there was no enabling provision, a waiver on tendered licence fee was allowed from December 28, 2021, to January 27, 2022, due to Covid-19.

This allegedly caused a loss of ₹144.36 crore to the exchequer, said the FIR, which has been instituted on a reference from the Union home ministry following a recommendation from Delhi lieutenant governor Vinai Kumar Saxena.