Explained: AAP's tussle with BJP & L-G and alleged 'scams'

The battle between Kejriwal and V K Saxena is getting more intense with more personal and political attacks ahead of the upcoming Assembly elections

The ongoing tussle between Bharatiya Janata Party (BJP) and the Aam Aadmi Party (AAP) that escalated after AAP minister Satyendar Jain was arrested on May 30, 2022, in a Prevention of Money Laundering Act (PMLA) case, has now turned into a battle of words and charges after the recent raids by the Enforcement Directorate (ED) against Deputy CM Manish Sisodia.

The first flashpoint in the AAP vs L-G battle began with the alleged liquor policy 'scam'. The Central Bureau of Investigation (CBI) in August took over the probe against 'irregularities' in the implementation of the Delhi government's Excise Policy 2021-22.

Why did the CBI take over the probe?

On the direction of the Lieutenant Governor of Delhi, Vinai Kumar Saxena.

Also Read | AAP vs L-G in Delhi again, CBI to probe 'irregularities' in bus procurement

On July 22, the L-G directed the chief secretary to submit a report on the role of officers and civil servants in alleged "illegal" formulation, amendments, and implementation of the Excise Policy 2021-22 of the Arvind Kejriwal-led AAP government. Saxena had already recommended a CBI probe into it.

What is the new liquor policy?

Delhi's new liquor policy came into effect in November 2021 and marked the exit of the government from the liquor trade altogether. Instead, it recognised ward-wise private liquor vendors who would be licensed to sell alcohol. The move was to discourage liquor mafias, black marketing, and to improve customer experience. According to the new policy, vendors could offer discounts on their own accord and set prices instead of a fixed MRP by the government.

Under the first run of the policy, the government's revenue increased by 27 per cent or Rs 8,900 crore.

However, trouble began for the AAP government soon.

The Economic Offences Wing of Delhi Police had already been investigating the Delhi government's excise department for irregularities. The CBI raids were set in motion after the Delhi Chief Secretary's report alleged irregularities in the ways these licences were given and accused Sisodia of giving undue benefits to private vendors in exchange for commissions and kickbacks. The L-G then recommended a CBI probe into the case.

After the probe began and CBI raids were conducted, the national capital switched to the old policy.

Here’s a look at the series of events that unfolded since probes into the excise policy began:

ED raids against Satyendar Jain

Satyendar Jain was the first to come under the scanner of the ED. He was taken into custody under criminal sections of the PMLA on May 30. Later, on June 6, ED conducted raids against Jain as part of a money-laundering probe linked to an alleged hawala dealings case.

Also Read | Kejriwal meets Delhi L-G, hopes 'situation will improve'

AAP alleged that ED raids against Jain were conducted by the Centre to divert attention from Prime Minister Narendra Modi's patronage to "hate politics" that has brought disgrace to the country.

However, the ED seized "unexplained" cash of Rs 2.85 crore and 133 gold coins in the raids conducted against Jain and his alleged associates as part of a money laundering probe against him.

Delhi Chief Minister Arvind Kejriwal dubbed the charges against Jain a "lie".

CBI raids against Manish Sisodia

On August 19, CBI conducted searches at Delhi Deputy Chief Minister Manish Sisodia's residence in connection with his dealings in the new Delhi Excise Policy, an action that immediately acquired political colour as AAP was sounding its poll bugle in Gujarat and Himachal Pradesh with pitches promising education reforms, free electricity and regularising temporary jobs.

The searches against Sisodia were held at a time when AAP's health and education reforms received praise in a front-page article by the leading US daily The New York Times.

While Sisodia "welcomed" the CBI searches, he said that the BJP was 'targetting' him and Jain because of the "excellent work done" by AAP in the health and education sectors.

Also Read | In L-G Saxena, AAP finds a relentless enemy hitting it where it hurts most

The AAP has been targeted not just of corruption in the liquor 'scam' but also in the education field. Sisodia was attacked over the same as well.

The Delhi L-G on August 26, also sought a report from the chief secretary over a delay of more than 2.5 years in acting on a Central Vigilance Committee (CVC) report on an inquiry into the construction of additional classrooms in government schools.

The CVC received a complaint in 2019 regarding irregularities and cost overrun in the construction of additional classrooms in Delhi government schools.

BJP's attempt to 'buy out' AAP MLAs

Just three days after the CBI searches, Sisodia, in a sensational claim that turned heads in the entire political spectrum, said that BJP approached him with an offer to drop all cases against him if he agreed to join the saffron party. He also said that the BJP offered him the CM's chair to turn against Kejriwal and leave his party.

Scaling up the fight, AAP on August 25 alleged that BJP offered a total of Rs 800 crore to 40 of its MLAs to switch sides, even as all 62 of its legislators were accounted for during a meeting at Kejriwal's residence amid speculation that around a dozen of them were untraceable.

"They (BJP) offered Rs 20 crore each to our MLAs. They have kept Rs 800 crore for toppling the Delhi government. But the citizens of the country want to know about the source of this money. Is it from GST or the PM CARES Fund? Have some of their friends given them this money?" Kejriwal asked.

BJP dismissed the "poaching" claim, terming it a "publicity stunt" by AAP. Delhi BJP MP Manoj Tiwari alleged that the AAP was trying to divert people's attention and questioned Kejriwal's "silence" over the Delhi excise policy.

Also Read | After CBI, ED has also given clean chit to Sisodia, says AAP; agency yet to respond

The BJP immediately denied the allegations with its North-East Delhi MP Manoj Tiwari claiming that Sisodia was making up stories as he was caught in corruption.

Information and Broadcasting Minister Anurag Thakur told reporters in Shimla that Arvind Kejriwal model has now been decoded and it is now "Mohalla clinic to Mohalla liquor vends". "From Swaraj, it has now become 'sharab' (liquor) raj. If Sisodia is accused no. 1 in the case, the kingpin is Arvind Kejriwal."

Thakur later said in Kangra in response to Sisodia’s allegation, "Kejriwal is a big liar and it seems that his ministers are bigger liars."

Corruption allegations against Delhi L-G

Attempting to step up its attack against the Centre, AAP on September 1 accused L-G V K Saxena of corruption, while he was heading Khadi Board. Saxena targeted Arvind Kejriwal for launching false accusations.

Previously in Delhi Assembly, AAP MLA Duregesh Pathak alleged that Saxena had pressured his employees to exchange demonetised notes worth Rs 1,400 crore in 2016 when he was KVIC chairman.

AAP also alleged that Saxena misused his position as KVIC chairman and awarded a contract for the interior design of a Khadi lounge in Mumbai to his daughter. The party also urged PM Modi to "immediately" sack Saxena.

This further soured relations between the ruling party and L-G.

Complaint against Arvind Kejriwal

L-G Saxena on September 7 received a complaint addressed to Delhi Lokayukta against CM Arvind Kejriwal demanding an inquiry into an alleged stamp duty evasion.

Reportedly, the complaint claimed that Kejriwal sold three plots for Rs 4.54 crore but showed on paper an undervalued price of Rs 72.72 lakh.

Another turn, another CBI probe

The wargame between Delhi L-G and AAP has now taken a turn to it with another CBI probe ordered by the L-G into the procurement of 1,000 low-floor buses by the Delhi Transport Corporation (DTC) on corruption charges.

While every Delhi chief minister has had their share of battles with the L-G and the opposition in their time, the battle between the AAP and BJP and Kejriwal and V K Saxena is getting more intense with new allegations every day as parties gear up for the upcoming Assembly elections. The raids, arrests are crucial for parties at the moment because opposition parties have been claiming that the Centre is misusing central investigation agencies to drown any voice of dissent and curb their progress. If charged and proven guilty of corruption, the AAP, whose poll plank from day 1 has remained keeping a clean record and standing up against corruption, will lose face ahead of upcoming Assembly elections.