Delhi LG asks chief secy to identify officials involved in liquor case

According to people in Saxena’s office, who asked not to be named, the chief secretary will also be asked to look into whether there was cartelisation in Delhi’s liquor market benefitting a handful of companies.

Lieutenant governor (LG) VK Saxena directed chief secretary Naresh Kumar on Saturday to investigate officers, including civil servants, for their role in alleged irregularities in Delhi’s excise policy, a day after he asked the Central Bureau of Investigation (CBI) to investigate the policy.

BJP workers protests outside Delhi deputy chief minister Manish Sisodia’s house in New Delhi on Saturday. (Amal KS/HT Photo)

The move escalates the confrontation between the LG and the elected government of chief minister Arvind Kejriwal, who on Friday called the allegations around the excise policy a plot by the Bharatiya Janata Party (BJP) to intimidate his Aam Aadmi Party colleagues since it posed a growing threat to the party in power at the Centre.

According to people in Saxena’s office, who asked not to be named, the chief secretary will also be asked to look into whether there was cartelisation in Delhi’s liquor market benefitting a handful of companies.

The Aam Aadmi Party denied the allegations afresh. “As per the older excise policy brought in by the previous governments, the Delhi government earned revenue of ₹4,109 crore in 2019-20. The new excise policy was brought in 2020-21 and that too in December 2020 and yet, there was an increase of ₹1,300 crore for the Delhi government within four months of its implementation.The total revenue was ₹5,446 crore. The BJP should learn some math before raising such allegations,” said senior AAP leader Atishi.

The Delhi government did not respond to requests for a comment.

“It was the duty of the officers to highlight, flag and bring to the notice of the chief secretary or the competent authority any irregularities taking place under their watch. However, with the records available so far, it is more than evident that certain officers, posted on certain positions, ignored and facilitated decisions that were in complete violation of the GNCTD, Act, 1991, Transaction of Business Rules, 1993, Delhi Excise Act, 2009 and Delhi Excise Rules, 2010,” said a senior official from the LG office, asking not to be named.

“Also, prima facie they acted as proactive conduits in formulating and implementing illegal orders solely at the behest of the minister in-charge, Manish Sisodia,” this person added.

The LG’s office did not respond to requests for a comment on the development.

The new controversy prompted questions over whether existing liquor shops will need to shut. Officials in LG office and the Delhi government, who asked not to be named, said the vends are likely to remain open with the current policy expected to be extended for a third time. The controversy will, however, delay the new excise policy 2022-23, these people added.

A second official in the LG office said the new inquiry by the CS could lead to suspension of officials if their prima facie involvement is found.

This person added that the file noting of the LG asking the CS to prepare a report on erring officials involved in the excise policy was sent on Saturday. “The LG has sought inter-alia, a comprehensive report of activities, dealings and scrutiny of files thereof and details of the role played by officers if any, thereto. Appropriate action as per law will be taken against such officers once the report is submitted and examined. The aim should be to achieve and establish total and bi-partisan probity, transparency and corruption free administration,” the second official said.

Saxena is also looking at allegations of cartelisation in Delhi’s liquor business, a practice, which the excise policy 2021-22 was supposed to put an end to as per the Delhi government. “In the old regime, each private retail store was an individual licensee. So, even if there was cartelisation, it was on a very small scale. But under the new policy, cartelisation grew bigger and sophisticated because the tender rules were such that only companies with huge turnovers were ready to put in so much money,” said the second official quoted above.

On Friday, Saxena recommended that CBI open an investigation into the Delhi government’s excise policy. The LG sent the file to the ministry of home affairs seeking a CBI inquiry, contending that several procedures were tweaked in order to benefit private liquor barons and individuals, and a probe must look into possible kickbacks.

Kejriwal on Friday had said: “There is no truth to any of the allegations. Sisodia is an honest politician. Sisodia has given hope to crores of children in the country that government schools can also be world-class.”

On Saturday, Atishi, the Kalkaji MLA also hit out at the central government, saying that no proof of corruption has been found against any AAP leader so far. “CBI, ED [Enforcement Directorate] and income tax department raids and cases being registered and arrests being made by the Delhi Police are not new for the AAP. Ever since AAP came to power in 2015, over 150 cases have been registered against our leaders... For six months, over 400 files belonging to the Delhi government were investigated by a scheduled committee formed by the central government through unconstitutional means. All investigative agencies failed to find any proof of corruption against any AAP leader,” she said.

The Delhi BJP and the Delhi Congress staged protests against the Aam Aadmi Party (AAP) on Saturday and demanded Sisodia’s resignation. “In the excise policy of the Kejriwal government, the liquor licensees were earlier provided 2.5 per cent commission that was raised to 12.5 per cent for direct benefit of 10 per cent to liquor mafia,” Delhi BJP chief Adesh Gupta said.