Undue favours for liquor vendors: LG Saxena in CBI complaint

Officials in the LG’s office said that it was after the report reached Kejriwal’s office, that the Delhi Cabinet “hurriedly” went on to clear all decisions “post facto” on July 14.

Lieutenant governor (LG) VK Saxena’s complaint to the Central Bureau of Investigation seeking a probe into Delhi’s new excise policy flags seven alleged violations, such as refund of ₹30 crore to a bidder, a tweak in the calculation of a levy on imported beer, purported relaxations in provisions in tender documents for private retail licensees, the waiving off of ₹144.36 crore of licence fee due to the pandemic lockdown, and allowing bid winners to open alternate vends in some wards.

Delhi Lieutenant Governor VK Saxena. (HT_PRINT)

Additionally, the complaint stated, decisions were taken without the approval of the Cabinet. The LG’s allegations – which the elected government led by Aam Aadmi Party’s Arvind Kejriwal denied -- were based on a report prepared by chief secretary Naresh Kumar on July 8.

Officials in the LG’s office said that it was after the report reached Kejriwal’s office, that the Delhi Cabinet “hurriedly” went on to clear all decisions “post facto” on July 14.

“The excise department on the direction of the minister in-charge decided to refund EMD amounting to ₹30 crores to the L-1 bidder of license of Airport Zone which failed to obtain NOC (no-objection certificate) from Airport authorities, in gross violation of rule 48(11)(b) of the Delhi Excise Rules, 2010, which clearly stipulates that the successful bidder must complete all formalities for grant of license, failing which all deposits made by him shall stand forfeited to the government. However, the government in apparent disregard with the rules, chose to refund the EMD, when it should have actually been forfeited,” read the report submitted by Kumar.

When asked for a comment, the LG’s office said, “The Delhi CS submitted a report highlighting procedural lapses and post tender benefits given to licensees. The Delhi LG has sent recommendations to the ministry of home affairs to get a CBI investigation done in the Delhi Excise Policy”.

The findings also stated that the excise department, without seeking approval from the competent authority, revised the formula of calculation of rates of foreign liquor and removed the levy of import pass fee at ₹50 per case on beer.

“This made foreign liquor as well as beer cheaper for retail (L7Z) licenses at the cost of loss of revenue to the state exchequer. Clearly, extension of such benefit after the tender has been awarded, amounts to extending undue favour to licensees. Also, the excise department yet again relaxed provisions of the tender document to provide undue financial favours to the L7Z (private retail) licensees, when it should have actually taken coercive action against them for default in payment of license fee, interest and penalty for non-genuine reasons,” it stated.

The state government’s revamped excise policy, introduced last year, was intended to herald a new era for the liquor business in the city, and completely overhaul the customer experience.

Delhi chief minister Arvind Kejriwal, in his response rebutting the allegations on Friday, said, “There are three reasons why they (BJP) are after the AAP: First, because we are honest. Second, because ever since AAP won in Punjab, they want to stall our expanding footprint across the country. Third, they want to stall the good works being done by us (AAP) in Delhi”.

Sisodia said in the coming days more such “false cases” will be registered against AAP leaders.

“Modi is very afraid of Kejriwal. People have become disillusioned with Modi. Now the country has hope only from Kejriwal. As AAP’s influence grows across the country, there will be many more false cases. But now no jail can stop Kejriwal and AAP,” Sisodia said in a tweet in Hindi.