Delhi's new liquor policy was scrapped and reverted to the old one
Delhi Chief Minister Arvind Kejriwal will be questioned by the Enforcement Directorate today in the liquor policy case. His former deputy Manish Sisodia is in jail in the same case. The Supreme Court had rejected the bail request of Mr Sisodia. Another Aam Aadmi Party (AAP) leader and MP Sanjay Singh was also arrested in the same case last month.
We look at what's the Delhi liquor policy case.
How it Began
The Delhi government brought in a new policy for liquor sellers in the national capital in November 2021. The Kejriwal government as part of the new policy stopped government outlets from selling liquor and allowed private parties to apply for licence to run stores.
The Kejriwal government said the policy would help stop black marketing, increase the Delhi government's revenue, and benefit customers.
The new policy allowed liquor stores to stay open even after midnight and sellers to give any discounts with no limit. Many private liquor stores saw their sales increase and the Delhi government claimed a 27 per cent rise in collections.
The opposition BJP in Delhi strongly criticised the new policy and accused the Kejriwal government of promoting "liquor culture". The BJP said many liquor stores had sprung up in residential areas.
First Sign Of Trouble
Delhi Chief Secretary Naresh Kumar in a report in July 2022 alleged he found many rule violations in the new liquor policy. Mr Kumar alleged the Kejriwal government's liquor policy gave "undue benefits" to sellers. The Chief Secretary pointed out a Rs 144 crore rebate in liquor licence fee during the Covid pandemic.
Following this report, Delhi Lieutenant Governor VK Saxena asked the Central Bureau of Investigation (CBI) to look 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 was put into place.
The Investigation
The CBI in August 2022 raided the home of Mr Sisodia. The Enforcement Directorate (ED) also joined the probe to investigate the money trail. The ED case was based on a first information report (FIR) filed by the CBI against Mr Sisodia and 14 others.
The probe agencies alleged the involvement of a "South Group". This alleged group comprised K Kavitha, leader 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 gave funds to the AAP 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.