2022 Delhi liquor scam

The Delhi Liquor Scam is a political scandal concerning the Delhi Government, which paved its way through the introduction of Delhi's Excise Policy from 2021 to 2022. This policy brought in private firms and enterprise companies into the retail liquor sectors. The allegations involve favouring the owners and shareholders of private sectors, waivers and reduction of license fee and creation of numerous licenses to all the new incoming enterprises, and bribery. The Excise policy 2021–22 created by the ruling Aam Aadmi Party (AAP), projected it as a reform in the excise and retail liquor sector, thereby boosting the revenue by Rs 9,500 crores. This policy mainly focused on moving out the retail sector, and making way to large private sectors and firms. The policy was structured by a group of ministers from the cabinet, and the draft was approved and accepted by the government in March 2021.

When the final draft was brought in front of the Lieutenant Governor Vinai Kumar Saxena for approval, he approved the bill with a condition that new liquor vendors in non-confirmed areas could only be opened upon the permission of the Municipal Corporation of Delhi. In November 2021, a government official from Delhi stated that, "for the first time ever all state-owned liquor shops were going to be shut and is transferred completely to private business players". Later the new policy was withdrawn and the government backed the old policy to be continued for now.

Background
In February 2021, a Group of Ministers led by Deputy Chief Minister Manish Sisodia and Health Minister Satyendra Kumar Jain was organised to look into reforms to the Delhi excise policy, which constituted a committee of experts. The Deputy Chief Minister of Delhi Manish Sisodia, who also holds the Excise portfolio brought in the Delhi's Excise Policy (2021–22). This bill aimed to privatise the sale of liquor in Delhi and cease government involvement in the sale of alcohol. The bill invited private enterprises to enter the field of liquor business, with an aim to boost up the excise department revenue by over a large percentage. The bill ended government ownership of liquor stores, which was replaced by the issuance of store operation licenses given to private companies. It also proposed an increase in the annual license fee from Rs. 8 lakh to 75 lakh. Areas of Delhi were categorized into 32 zones which further included 8–10 wards, each of which would have around 27 outlets. This meant every municipal ward had 2–3 liquor vendors operating in the area.

The government also said that it would eliminate the liquor mafia, and enhance consumer experiences visiting new outlets. There were also guidelines issued for the appearance of the outlets. The private liquor shops were allowed to provide discounts on MRP to attract customers, and were also given provision to deliver liquor until 3 AM. This bill was further sent to the Lieutenant Governor's sign and approval, which was passed by the governor with certain conditions on unauthorized areas set.

Corruption allegations
After the policy's implementation, there were a batch of complaints alleging a “multi-crore scam” in the policy, one of which was filed with the Delhi Police in June 2022 by former Delhi Congress president Chaudhary Anil Kumar. The bill faced severe backlash from the opposition BJP and Congress, stating that the government has sold all the licenses in exchange for money and accused that the government has handed over the Excise department fully to private players and business agencies. The liquor license holders were allegedly given extensions according to their own will. The opposition also accused that the new policies contradicted the excise policies, and businessmen were given an exemption of 30 crores, as per their will. Both the parties also sought intervention from central agencies to investigate the same. Sisodia further added that "849 new outlets were to be opened, including in unauthorized areas under the new policy which even the governor had approved."

In July 2022, Chief Secretary of Delhi, Naresh Kumar, reports procedural violations in the formation of the liquor policy to Saxena, who recommended a CBI probe. These alleged violations were the ignoring of the recommendations of the expert committee and the bypassing of the Lieutenant Governor when implementing the policy. This report alleged losses to the exchequer of up to 580 crore. Another investigation by the Enforcement Directorate alleged that the liquor policy would give liquor wholesalers a guaranteed 12% profit margin in exchange for a 6% kickback paid to AAP ministers. The ED alleged that Jain and Sisodia overruled the decisions of the expert committee and bypassed the Lieutenant Governor in tweaking the policy to include this profit margin, which they alleged was never discussed during the meetings of the Group of Ministers but was instead agreed on as a "collective decision" of the Delhi cabinet. It was further alleged that Vijay Nair, the AAP's communication in charge who was closely interacting with Sisodia about the liquor policy, was paid 100 crore in advance kickback by a "South Group", consisting of Hyderabad-based private entities. Some of the members of this alleged "South group" included former Telangana Chief Minister's K. Chandrashekhar Rao's daughter K. Kavitha and then-Ongole Lok Sabha MP Magunta Sreenivasulu Reddy from ruling YSRCP party in Andhra Pradesh, along with many Hyderabad-based businessmen. In exchange Nair allegedly granted this "South group", which had no foothold in the Delhi liquor business at the time, wholesale licenses and retail license above and beyond the policy's allowance, as well as other "undue favours".

The state opposition BJP also released a "sting operation" video, where father of an FIR accused Sunny Marwah collected money stating it as "excise duty" under the new policy. The BJP IT-cell head Amit Malviya released the video, and voiced large corruption and bribery by officials, and pitched in concerns that the state suffered with middlemen and mafias in the government.

Timeline
2021


 * February 2021: Group of Ministers led by Deputy CM Manish Sisodia and Health Minister Satyendra Kumar Jain organised to look into excise policy reforms
 * 17 November 2021: Delhi government implements new liquor policy giving control over wholesale and retail sectors to private entities

2022


 * 8 July: Chief Secretary of Delhi, Naresh Kumar, submits report to Lieutenant Governor on alleged irregularities in the formulations of the exicse policy
 * 22 July: Lieutenant Governor recommends CBI probe into formulation of excise policy
 * 19 August: CBI files FIR against 15 people, including Sisodia, in formulation of exicse policy
 * 20 August: CBI conducts raids on Sisodia's residences
 * 22 August: ED registers separate related money laundering case
 * 1 September: Delhi government repeals 2021-2022 excise policy, reverts to old model of government ownership of wholesale and retail
 * 6 September: ED conducts raids in 40 locations across the country, Sisodia's properties are not included
 * 25 November: ED files chargesheet against seven accused, alcohol businessmen and Delhi government officials
 * 21 December: ED includes BRS MLC K. Kavitha in accused in chargesheet

2023


 * 7 January: ED includes Aurobindo Pharma owner Sharath Chandra Reddy and Abhishek Boinpally in supplementary chargesheet
 * 26 February: CBI arrests Sisodia after eight hours of questioning
 * 1 May: ED files new chargesheet against Kavitha and her husband, accusing them of using illegal funds to purchase land for cheap prices

Entry of Lieutenant Governor
Manish Sisodia who also heads the excise department accused the governor V K Saxena who had approved the bill earlier without any issues of opening outlets even in unauthorized areas, of "changing stand as per requirements". Further AAP also accused that L-G Saxena exchanged demonetized currency notes worth of ₹1,400 crore while he was chairman of a government Khadi body in 2016. Saxena expressed huge objections stating it to be "baseless" and "deliberately misleading" levelled accusations. He advised the chief minister Arvind Kejriwal and his colleagues to refrain from these "petty behaviors and statements". He also sent legal notice and said that he would sue AAP leaders, by lodging a defamation case against them.

Arrests
On 20 August 2022, the Central Bureau of Investigation (CBI) conducted raids on the Deputy CM Sisodia's residences to determine the series of accusations charged on the government relating to the liquor scam. Raid were also carried out on civil servants and officers related to this issue. The state opposition BJP lauded the agency to bring out the truth and the culprits to be punished. The opposition parties cried foul and vendetta politics by BJP over the raids executed. Kejriwal tweeted "We welcome the CBI and support any type of investigation".

On 6 September 2022, the Enforcement Directorate (ED) carried out raids in 40 locations across the country. As per the officials these raids were carried out on the basis of FIR filed by the CBI, in which Manish Sisodia was named as accused. The premises of private individuals and other government officials linked to these charges were probed and investigated. Vijay Nair, AAP's communications-in-charge, was also arrested that day.

In November 2022, the ED filed a chargesheet against seven accused, alcohol businessmen and Delhi government officials. On 15 December, K. Kavitha was first named in a chargesheet.

On 26 February 2023, Manish Sisodia himself was arrested.

Arvind Kejriwal was arrested on 21 March 2024 following a raid on his home by the Enforcement Directorate, was remanded until 28 March 2024, and remains in the custody of the Enforcement Directorate (ED). He had skipped nine summons from the ED before that. The Delhi High Court dismissed Chief Minister Arvind Kejriwal's petition against his arrest.

List of arrests made
So far a total of 17 people have been arrested in this case.