Searches at Aam Aadmi Party (AAP) MP Sanjay Singh's home in a money laundering case is the latest development in the investigation into the now-scrapped Delhi liquor policy. Here is a round-up of the case and the key figures who have faced action so far.
The Policy
In November 2021, the Arvind Kejriwal government introduced a new liquor policy in the national capital. Under the policy, the government withdrew from retail sale of liquor and allowed private licensees to run stores. The move, the government said, was aimed at cracking down on black marketing, increasing government revenue and improving the overall customer experience.
Under the new policy, liquor shops could stay open well past midnight and stores could offer unlimited discounts. Attractive deals were offered, sales rocketed, and Delhi government reported a 27 per cent spike in revenue.
The Opposition BJP opposed the new liquor policy, accusing AAP of allowing liquor vends to open in residential areas and promoting a "liquor culture" in the capital.
The Case
In July 2022, Delhi Chief Secretary Naresh Kumar flagged gross violations in the new liquor policy. His report alleged "undue benefits" to liquor licencees. The official also flagged a Rs 144-crore rebate in liquor licence fee during the Covid pandemic.
On the basis of the Chief Secretary's report, Lieutenant Governor VK Saxena recommended a CBI probe into the matter. This sharpened the BJP attack on the AAP-led government. The ruling party trashed the allegations. Soon after, Delhi government withdrew the new liquor policy. This caused more than 400 newly opened stores to down shutters. Sale of liquor was back under government control till a new policy is put into place. A year on, the same system continues.
The Investigation
Soon after taking over the investigation into the case, the CBI in August 2022 raided the residence of Delhi's then deputy Chief Minister and AAP's Number 2 leader Manish Sisodia. Mr Sisodia said the central agency found nothing and alleged that the BJP had cooked up a case to target the AAP government. The Enforcement Directorate joined the probe to investigate the money trail. The ED case was based on the FIR filed by the CBI against Mr Sisodia and 14 others.
The probe agencies also alleged the involvement of a "South Group". This alleged group comprised K Kavitha, legislator of Bharatiya Rastra Samithi and daughter of Telangana Chief Minister K Chandrashekar Rao, YSRCP MP M Srinivasulu Reddy and Sarath Reddy of Aurobindo Pharma. The ED alleged that the "South Group" and AAP had an arrangement under which the former provided funds to the Arvind Kejriwal-led party for its Goa election campaign. The "South Group" was to recover this money through liquor businesses it controls in Delhi, the ED alleged. The AAP was accused of favouring these liquor networks while giving out licences under the new policy.
In April this year, after CBI questioned him for nine hours, Delhi Chief Minister Arvind Kejriwal said the whole case is "fake". Others who have been questioned are Mr Kejriwal's personal assistant Bibhav Kumar and AAP leader Jasmine Shah. Ms Kavitha has been questioned by the ED in connection with the case. She has trashed the allegations. Sanjay Singh was not named as an accused by the ED in any of its three chargesheets. Businessman Dinesh Arora, one of the approvers in the case, has said Mr Singh introduced him to Mr Sisodia. The Rajya Sabha MP has not been summoned in the case so far.
The Arrests
In September last year, the CBI arrested Vijay Nair, former CEO of an event management firm who had links to AAP. The agency's FIR alleged that Nair was involved in "irregularities in framing and implementation of excise policy". AAP said Nair was just a party worker who had no link to the liquor policy. The same month, liquor retailer Sameer Mahendru was arrested by ED.
CBI's second arrest in the case was Abhishek Boinpally, a director with Robin Distilleries. He was allegedly lobbying for some businessman. In November 2022, Sarath Reddy of Aurobindo Pharma and Benoy Babu, an executive of liquor giant Pernod Ricard, were arrested by ED. Sarath Reddy has since become an approver in the case.
In February, the CBI arrested Buchi Babu, the former Chartered Accountant of Ms Kavitha, for allegedly acting on behalf of the "South Group". He, too, has turned an approver in the case. The same month, the ED arrested YSRCP MP Reddy's son M Raghavan.
The biggest arrest in the case came in March when the ED arrested Mr Sisodia on money laundering charges. His repeated attempts to get bail have failed. The senior AAP leader has also resigned as Deputy Chief Minister and given up the multiple portfolios he held.
