NEW DELHI: Setting the stage for a major escalation in the Centre-AAP face-off, lieutenant governor VK Saxena on Friday recommended a CBI investigation into Delhi Excise Policy 2021-22 after the chief secretary in a report flagged alleged violations of various acts and rules besides "deliberate and gross procedural lapses" to provide "undue benefits" to liquor licensees.
The excise department is headed by deputy chief minister Manish Sisodia, who also handles 17 other important portfolios, including home, finance, education, health, power, public works and water. Former Delhi health minister Satyendar Jain is already in judicial custody in an alleged money laundering case.
Sources claimed the LG has found substantive indications of "financial quid pro quo" at the top level, adding that the excise minister "took and got executed major decisions in violation of the statutory provisions" and notified the excise policy that had "huge financial implications".
"He also extended undue financial favours to the liquor licensees much after the tenders had been awarded and thus caused huge losses to the exchequer," a source alleged.
The Delhi government had come out with a new excise policy in November 2021, withdrawing from retail trade of liquor. Though the revised policy was expected to be announced in the new financial year, sources said the controversies around the previous one delayed the process.
'Some decisions taken without approval of cabinet'
New Delhi: Chief secretary Naresh Kumar in his report dated July 8, 2022, flagged seven "procedural lapses" in the implementation of Delhi Excise Policy 2021-22, officials said. According to the report, the excise department allowed a waiver of Rs. 144.36 crore to the liquor cartel on the tendered licence fee on account of the Covid-19 pandemic.
The government earned close to Rs 7,000 crore by auctioning licences to private players for opening 849 stores in the Capital. Calling the case "fake", chief minister Arvind Kejriwal said Sisodia was staunchly honest and he, his ministers and MLAs did not fear going to jail.
The department, claimed sources, also refunded the earnest money of Rs 30 crore to the lowest bidder for the Airport Zone licence after it failed to obtain the no-objection certificate from the authorities concerned. "It was in gross violation of Rule 48(11)(b) of Delhi Excise Rules, 2010, which clearly stipulates that the successful bidder must complete all the formalities for grant of licence failing which all deposits made by him shall stand forfeited to the government," the source added.
Sources claimed that the chief secretary also questioned the excise department's order dated November 8, 2021, revising the formula for the calculation of rates of foreign liquor and removing the levy of import pass fee of Rs 50 per case on beer without the approval of the competent authority, thus making it cheaper for retailers and causing loss of revenue to the state exchequer.
The sources also claimed that the chief secretary had found lapses in the process of awarding the licence for two liquor vends in each ward. "The excise department also relaxed provisions of the tender document to provide undue financial favours to the retailers, when it should have actually taken coercive action against them for default in payment of licence fee, interest and penalty for non-genuine reasons," a source quoted the chief secretary as writing in his report.
Some of the decisions, alleged sources, were taken by excise minister Manish Sisodia without the approval of the Cabinet, and despite questions raised by the then LG, the excise department implemented them. "The illegal decisions taken in the past were attempted to be legalised by getting the stamp of a post facto Cabinet decision as recently as on July 14, which in itself was in violation of laid down rules and procedures," alleged a source.
Sources claimed the report by the chief secretary to the LG was in accordance with Rule 57 of the Transaction of Business Rules 1993, which mandates the former to flag any deviation from laid down procedures to the latter and the chief minister.
