The case of the liquor scam in Delhi has been making headlines across the country these days. On Thursday evening, around 7 PM, an ED team reached Delhi Chief Minister Arvind Kejriwal's house to serve him a summons. It was then revealed that they had a warrant to search the CM's house. A few hours later, Arvind Kejriwal was questioned and then a few hours after that, news came that he too had been arrested. Now, the alleged liquor scam has led to the arrest of the third top leader of the Aam Aadmi Party. Earlier, Delhi's former Deputy Chief Minister Manish Sisodia and Rajya Sabha MP Sanjay Singh are already in jail.
Among all these events, questions arise as to whether there is indeed a liquor scam? What was the new liquor policy?
What kind of corruption allegations are involved?
What are the accusations against the leaders that led to their arrest?
Let's find out the answers to all these questions...
First, let's understand what Delhi's new liquor policy was?
On November 17, 2021, the Delhi government implemented a new liquor policy in the state. Under this, 32 zones were created in the capital and each zone was supposed to have a maximum of 27 shops opening. In this way, a total of 849 shops were supposed to open. In the new liquor policy, all liquor shops in Delhi were privatized. Previously, 60% of liquor shops in Delhi were government-owned and 40% were private. After the new policy came into effect, all shops became 100% private. The government argued that this would result in a benefit of Rs 3,500 crores.
The government also increased the license fee significantly. For an L-1 license, contractors had to pay 25 lakhs earlier, but after the new liquor policy came into effect, they had to pay five crores for it. Similarly, there was a significant increase in the license fee in other categories as well.
First, let's understand what Delhi's new liquor policy was?
On November 17, 2021, the Delhi government implemented a new liquor policy in the state. Under this, 32 zones were created in the capital and each zone was supposed to have a maximum of 27 shops opening. In this way, a total of 849 shops were supposed to open. In the new liquor policy, all liquor shops in Delhi were privatized. Previously, 60% of liquor shops in Delhi were government-owned and 40% were private. After the new policy came into effect, all shops became 100% private. The government argued that this would result in a benefit of Rs 3,500 crores.
The government also increased the license fee significantly. For an L-1 license, contractors had to pay 25 lakhs earlier, but after the new liquor policy came into effect, they had to pay five crores for it. Similarly, there was a significant increase in the license fee in other categories as well.
Why were allegations of corruption made?
There are allegations of both the public and the government suffering losses due to the new liquor policy. On the other hand, it is being said that big liquor businessmen benefited from it. This is the accusation of the Bharatiya Janata Party. The issue of corruption is coming to light in three ways. To understand this, let's take a look at some figures.
Allegations of benefiting big businessmen by increasing license fees
Contractors have to take a license for selling liquor bricks. For this, the government has set a license fee. The government has created several categories. Under this, licenses are given to sell liquor, beer, foreign liquor, etc. For example, earlier, for a license, the contractor had to pay 25 lakhs, but after the new liquor policy came into effect, they had to pay five crores for the same. The allegation is that the Delhi government deliberately increased the license fee to benefit big liquor businessmen. As a result, small contractors' shops closed down, and only big liquor mafias got licenses in the market. The opposition also alleges that in return for this, leaders and officers were given hefty bribes by liquor mafias. The government claims it was a deal of benefits: The government argues that by increasing the license fee, the government earned a lump sum revenue. This helped the government compensate for the reduced excise duty and VAT.
Allegations of a significant decrease in government revenue in retail sales
The second allegation is regarding the sale of liquor. For example, suppose earlier a 750 ml bottle of liquor was sold for 530 rupees. At that time, a retail trader made a profit of 33.35 rupees on one bottle, while the government earned 223.89 rupees as excise duty and 106 rupees as VAT. This means the government earned a profit of 329.89 rupees per bottle. It is claimed that with the new liquor policy, the price of the same 750 ml bottle of liquor increased from 530 rupees to 560 rupees. Additionally, the profit of retail traders increased from 33.35 rupees to directly reaching 363.27 rupees. This means that the profit of retail traders increased more than ten times. However, the government's profit decreased from 329.89 rupees to three rupees and seventy-eight paise. This includes 1.88 rupees as excise duty and 1.90 rupees as VAT.
How did the investigation into the scam start?
Complaints of alleged irregularities in the implementation of this liquor policy led to the Lieutenant Governor recommending a CBI investigation. This brought the Delhi Excise Policy 2021-22 under scrutiny. However, allegations of irregularities in making and implementing the new liquor policy were later canceled amidst allegations of corruption.
In August 2022, the CBI filed an FIR against 15 accused in this case for alleged violations of rules and procedural irregularities in the new liquor policy. Later, ED initiated an investigation into a case of money laundering under PMLA related to this registered case.
ED and CBI are conducting separate investigations into the alleged corruption in Delhi's new liquor policy. ED is investigating allegations of financial irregularities in making and implementing the policy. Meanwhile, CBI's investigation focuses on alleged irregularities during policy formulation.
