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The Supreme Court has asked the Enforcement Directorate (ED) to explain why the political party, which was allegedly the beneficiary of the Delhi Excise Policy 'scam', has not been made an accused in the money laundering case.
What was the policy about?
The Delhi liquor policy was introduced in March 2020 with the aim to end the liquor mafia and black marketing, increase revenue, and improve the consumer experience.
Under this policy, the government withdrew from retail sale of liquor and allowed private licensees to run stores. The policy was framed on the recommendations of an expert committee and came into force on November 17, 2021.
Framework of the New Policy
The city was divided into 32 zones, each with a maximum of 27 vends, and 849 liquor vends were awarded to private companies through open bidding. Instead of individual licences, bidding was done zone-by-zone.
Since, the policy enabled retailers to offer "unlimited discounts", it brought a significant boost in sales, contributing to a remarkable 27% rise in revenue.
What went wrong then?
In July 2022, Delhi's Chief Secretary Naresh Kumar flagged gross violations in the new liquor policy, citing allegations of undue financial favours given to liquor licensees, much after the tenders had been awarded, thus causing huge losses to the exchequer.
This led to a CBI investigation into the matter on recommendation of Lieutenant Governor VK Saxena.
Why was this new policy withdrawn?
On July 31 amid allegations of corruption and irregularities in the drafting and implementation of the policy, the AAP government temporarily withdrew the policy.
Moreover, the policy failed to generate the expected revenue, and retailers and wholesalers exited the business. The loss of excise revenue despite the high sale of liquor was another reason for the temporary withdrawal of the excise policy.
Sisodia’s arrest and aftermath
Manish Sisodia, former Deputy Chief Minister of Delhi was arrested on 26th February in connection in the same case with various charges.
The CBI has alleged that Sisodia was the "chief architect" of the conspiracy but was not able to present any strong evidence against him as the the Supreme Court asked probe agencies to show proof in the alleged Delhi liquor policy scam.
AAP’s Future course of action
The Delhi government decided to revert to the old excise regime that was in place before November 17 last year.
The old policy will be in effect for the next six months, with plans to introduce a new liquor policy in the future, potentially including changes such as lowering the legal drinking age from 25 to 21 and allowing both private and government-run liquor shops.
Latest developments in the case
The Enforcement Directorate (ED) is set to inform the Supreme Court its intention to include the Aam Aadmi Party (AAP) as an accused in the Delhi Liquor Policy case.
Additionally, in connection with this case, Rajya Sabha MP Sanjay Singh has become the second AAP leader to be detained by the (ED) following a raid at his residence.
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