CASE STUDY For Delhi Excise policy – 2024

Excise Policy Case: The Enforcement Directorate (ED) took Delhi Chief Minister Arvind Kejriwal into custody on Thursday evening in the Delhi Liquor Policy case. This is the third high-profile arrest of an Aam Aadmi Party (AAP) leader related to this case.

The development comes after the Delhi High Court refused to grant him protection from arrest in the liquor policy case. He was arrested for not complying with nine previous summonses sent by the ED for questioning.

But what exactly is the Delhi Excise Policy case, and what are the allegations against Kejriwal and other AAP members?

What is the Delhi Excise Policy issue?

·      In November 2021, the Delhi government led by Arvind Kejriwal introduced a new excise policy aimed at modernizing liquor sales in the city. However, the move received a mixed response, with some applauding its progressive approach, while others raised concerns about its potential financial and public health impacts. 

·      Less than a year later, in July 2022, Delhi Chief Secretary Naresh Kumar reported violations in the policy to Lieutenant Governor (LG) Vinay Kumar Saxena, who recommended a Central Bureau of Investigation (CBI) investigation. The report submitted alleged “financial loss to the exchequer of more than Rs 580 crore”.

·      The Enforcement Directorate (ED) alleged that the policy was deliberately designed with loopholes to benefit AAP leaders and promote cartel formation. It accused AAP leaders of accepting bribes in return for preferential treatment from liquor traders like exemptions, license fee waivers and relief during the COVID-19 pandemic.

·      In this “scam”, the ED alleged that the wholesale liquor business was given to private entities at a fixed margin of 12 per cent in exchange for a kickback of 6 per cent.

·      Additionally, he was accused of influencing elections in Punjab and Goa in early 2022.

·      The CBI had conducted the raid targeting the then Deputy Chief Minister Manish Sisodia and three others. The CBI in its FIR named Sisodia and 14 others, including AAP’s communications in-charge Vijay Nair, who was arrested in September 2022. 

·      In March, the ED had told the court that over Rs 292 crore had been received from the alleged excise policy scam.

·      Recently, Bharat Rashtra Samiti (BRS) leader K. Kavita was also arrested for allegedly paying Rs 100 crore to top AAP leaders to get the benefits of the New Delhi Excise Policy. 

What are the allegations against CM Kejriwal? 

The ED claimed that Kejriwal himself contacted the key accused and urged them to cooperate with others involved in the case.Despite receiving nine summonses between October 2023 and March 2024, Kejriwal was arrested after the Delhi High Court rejected his plea for protection from arrest. CM Kejriwal’s reply to the allegations Kejriwal says the ED’s action is politically motivated and driven by the ruling Bharatiya Janata Party (BJP). Senior advocate Abhishek Manu Singhvi, appearing for Kejriwal, argued in the court that the summons lacks clarity and is a vague phishing campaign, which violates Kejriwal’s fundamental rights. In view of the current developments, this matter is attracting attention and investigation. 

“The arrest would be a serious violation of the fundamental right to life and liberty,” Singhvi said. The March 16 summons was issued on the same day the general election schedule was announced. The ED has been calling since last year, they are waiting for two more months. Can’t wait?”