Delhi’s Dy CM Sisodia arrested by CBI over liquor excise policy ‘irregularities’

Over seven months ago on July 8, Delhi Chief Secretary Naresh Kumar submitted a report to the Lieutenant-Governor’s Office, alleging procedural lapses in the implementation of the policy and claiming that post-tender benefits were extended to the licensees. L-G Vinai Kumar Saxena wrote the same month to the Union Ministry of Home Affairs recommending a CBI inquiry.

As the controversy around the new liquor policy – meant to remove government intervention and completely privatise Delhi’s liquor business – gathered momentum, Sisodia on July 30 last year announced that the AAP government would revert to the old excise policy, and only government liquor vends will be allowed to operate.

On August 17, the CBI filed an FIR in the case, and two days later, raided 21 locations in Delhi, including Sisodia’s house. The first high profile arrest in the case of Vijay Nair, AAP’s communication in-charge, came on September 28.

In a statement following Sisodia’s arrest on Sunday, the investigating agency’s spokesperson said: “The CBI has today arrested the Deputy CM of Delhi in an ongoing investigation of a case related to alleged irregularities in framing and implementation of the excise policy of GNCTD. The instant case was registered against the Deputy CM and in-charge excise minister, Delhi government and 14 others for investigation into the matter of alleged irregularities… and extending post tender benefits to private persons.”

On Sunday, he joined the investigation at 11.12 am. “During questioning, multiple breaks were taken and lunch from the in-house canteen was provided to him,” said a source in the CBI.

Elaborating on the arrest, the spokesperson said: “We had issued a notice under section 41A of CrPC to the Deputy CM for attending the investigation on February 19. However, he sought time of one week citing his preoccupation. Accepting his request, he was issued another notice for attending the investigation today for answering various questions evaded by him during his examination on October 17, 2022, and further questions relating to his incriminating role based on evidence collected during investigation of the case. However, he gave evasive replies and did not cooperate with the investigation despite being confronted with evidence to the contrary. Therefore, he has been arrested. The arrested accused will be produced before the Designated Court, Delhi.”

As his party’s chief Arvind Kejriwal called the arrest “dirty politics” and targeted the Centre for arresting “honest patriots” while going easy on “friends who loot the nation”, the BJP fielded senior leaders to hit back. At a press conference, I&B Minister Anurag Thakur said: “Why are you afraid if you haven’t done anything? But if you have done something, there is no point in saying anything in your defence.”

According to CBI sources, their investigation has focused on a few key points. One of them is the allegation that the profit margin for wholesalers was 6 per cent in earlier excise policy, while in the new one, it was increased to 12 per cent “on the request of the South lobby” – a reference to South India-based liquor manufacturers.

The CBI also claims to have found during its probe that four phone numbers being used by Sisodia had been purchased under different names. It is alleged that digital evidence stored in high-end smartphones was destroyed, with a CBI source claiming: “During one year-period of liquor scam, accused and suspects have changed/ destroyed over 100 phones and several phones they have recovered, but most of them were found to be formatted, chats were deleted.”

Sisodia is among 15 booked in the CBI FIR – the others being three excise department officials and several vendors and distributors. The FIR states: “Manish Sisodia, Deputy CM; Arava Gopi Krishna, then Commissioner (Excise); Anand Tiwari, then Deputy Commissioner (Excise); and Pankaj Bhatnagar, Assistant Commissioner (Excise) were instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without the approval of competent authority with an intention to extend undue favours to the licensee post tender.”

While Sisodia’s arrest has been made in the CBI case, the ED too filed a supplementary chargesheet over alleged irregularities in the Delhi excise policy case earlier this month. In it, the agency claimed that the policy was created by top leaders of the AAP to continuously generate and channel illegal funds to themselves.

The chargesheet states: “C Arvind, Secretary to Sisodia, in his statement (to the ED), said that the draft Group of Members (GoM) report was given to him in the mid of March, 2021 when he (Arvind) was called by Sisodia to Delhi Chief Minister Arvind Kejriwal’s residence where Satyender Jain was also present. The conspiracy of GoM to give wholesale business to private entities and fix 12% margin (to get 6% kickback out from the same) is clear from the statement of C Arvind, wherein he disclosed that there was neither any discussion in the GoM Meetings about giving wholesale to private entities nor fixing 12% profit margin for them.”

It adds: “C Arvind also told the ED also that Vijay Nair and Sisodia used to meet frequently during the period of implementation of the Excise Policy 2021-22. They both used to conduct these meetings in the Secretariat, in the retiring room of Sisodia which is attached to his chamber. Usually, Sisodia would not spend much time in his retiring room apart from lunch, but whenever Nair would come to meet him, they used to have these meetings in that room. On one occasion, he had gone to Sisodia’s residence to get a file signed, where a meeting was going on which was attended by the Excise officials of Punjab, Raghav Chadha and Nair.”