What is Delhi's controversial Excise Policy and why is CBI raiding Manish Sisodia's residence?

As the Excise Department is headed by Manish Sisodia, he faces allegations of financial quid pro quo in executing major decisions around the policy

The Central Bureau of Investigation (CBI) Friday raided 21 locations in Delhi, including the residence of Deputy Chief Minister Manish Sisodia in relation to the Arvind Kejriwal government's controversial Excise Policy.

The probe teams also raided premises of three officials including 2012-batch IAS officer Arava Gopi Krishna, a former Excise Commissioner.

The raids in seven states and Union Territories came after the CBI registered a case in connection with alleged irregularities in the formulation and execution of the Delhi Excise Policy brought in November last year that led to alleged loss to the state exchequer.

Also Read: Explained: Delhi's liquor policy controversy

Sisodia claimed that he was innocent and the CBI was working at the behest of the Centre. "CBI has come. They are welcome. We are extremely honest. Making the future of millions of children. It is very unfortunate that those who do good work in our country are harassed like this. That is why our country has not yet become number-1," Manish Sisodia tweeted in Hindi.

What is the Excise Policy and what is the controversy?

The AAP government's Excise Policy 2021-22 which came into force on November 17 last year drew criticism from the Opposition and the industry experts in the national capital for multiple reasons.

Under the new policy, the retail licences were given to private bidders for 849 vends across the city divided into 32 zones. Opposing the policy, the Opposition had lodged complaints with the L-G as well as central agencies seeking a probe into it.

Last month, Delhi Lieutenant Governor V K Saxena recommended a CBI probe into the new excise policy after a report by the Delhi Chief Secretary in July showed "deliberate and gross procedural lapses" to provide post-tender "undue benefits to liquor licensees", causing loss to the exchequer.

The CBI is investigating the allegation that the Excise Department under Sisodia gave a waiver of Rs 144.36 crore to licensees on the tendered licence fee citing Covid-19 besides refunding the earnest money of Rs 30 crore to the lowest bidder for the licence of the airport zone when it failed to obtain a no-objection certificate from airport authorities.

This is claimed to be in violation of Delhi Excise Rules, 2010, which mandated that the successful bidder must complete all formalities for the grant of the licence, failing which all deposits made by him shall stand forfeited to the government.

Among other things, the new policy slashed the number of dry days to three from 21, allowed bars in hotels and retail licencees to offer rebates and schemes on alcohol.

The AAP government is also accused of attempting to legalise "these illegal decisions" by getting the nod of the Cabinet which is said to be in violation of laid down rules and procedures.

What was the impact of the policy?

Delhi residents faced a shortage of liquor of their choice as the capital witnessed a dearth at many outlets in the city. Even some premium category whiskies were not available in below one-litre quantity at various outlets.

Following the L-G's call for a probe, the AAP government subsequently decided to revert to the old excise policy. Delhi's excise department officials made changes in provisions of excise policy 2021-22 and executed it without the consent of the council of ministers, causing "windfall gains" to licensees and losses to the Delhi government.

What did AAP say?

AAP national convenor and Delhi Chief Minister Arvind Kejriwal termed the case as "false" and said that BJP is afraid of AAP's expansion, shortly after the probe was demanded last month.

"The whole case is fabricated. I have known Sisodia for the past 22 years. He is honest. When he became a minister the Delhi government schools were in a poor condition. He worked day and night to bring them to the level where a judge's child and a rickshaw driver's child sit together to study," said CM Kejriwal.

Following the raids on Friday, he said, the CBI raid at his junior colleague’s house was the result of their good performance which is being appreciated globally.

He said there were CBI raids before and nothing will come this time as well.

What the Opposition is saying about the raids?

The Congress party too had come under the spotlight over the National Herald case, in which Sonia and Rahul Gandhi were questioned by the Enforcement Directorate. Hence, the party came in support of the Deputy Chief Minister.

Congress said the “relentless misuse” of agencies against political rivals erodes their credibility and gives an opportunity even for the corrupt to get away.

Soon after CBI raids were conducted at the residence of Delhi Deputy Chief Minister Manish Sisodia, Congress spokesperson Pawan Khera said the honest end up paying the price in such processes.

"The flip side to relentless misuse of agencies against political rivals is that even legitimate, rightful actions of agencies come under a cloud of suspicion. In the process, the corrupt get away hiding behind the 'misuse' argument and the honest end up paying the price," Khera said on Twitter.

(With Agency inputs)