Behind deepening Kejriwal govt, babus faultline: Services law, CS vs AAP tussle, liquor and land scams

Naresh has denied the allegations, with Ashwani claiming that the former’s image was being tarnished as he ordered probes in several cases including one related to Chief Minister Arvind Kejriwal’s house renovation besides the alleged excise policy scam.

Naresh, a bureaucrat of the AGMUT or Central cadre’s 1987 batch, is the senior-most IAS officer in Delhi. He was said to be “instrumental in convincing the Centre of criminality” in the Delhi excise policy scam being probed by the CBI and ED.

Kejriwal’s deputy and top AAP leader Manish Sisodia had become the first casualty of a vigilance probe ordered by Naresh into alleged irregularities in the now-scrapped excise policy for 2021-22.

AAP MP Sanjay Singh was recently arrested in connection with the liquor policy scandal even as more cases surfaced against AAP ministers and functionaries since Naresh took charge in April last year.

Naresh is among several babus set to retire by the end of this month, which would lead to a bureaucratic reshuffle in the Capital by the Union Ministry of Home Affairs (MHA).

Surfacing of cracks

On May 11 this year, drawing the curtains on an eight-year-long legal battle between the Kejriwal government and the Centre, a Supreme Court Constitution Bench ruled that the Delhi government has legislative and executive powers over services in the Capital.

However, days later the Centre brought the contentious Government of National Capital Territory of Delhi (Amendment) Ordinance, 2023, which gave it control over services and gave sweeping powers to the Lt Governor and bureaucrats. The NCT Ordinance, which was seen as a bid to nullify the apex court’s judgment, was later replaced by a Bill enacted by Parliament during the monsoon session.

In the brief interlude between the SC verdict and the Ordinance’s promulgation, the AAP government took on the bureaucracy head on. Kejriwal led the charge, holding a press conference to tell babus that they would be held accountable for their actions. The CM also wrote to the Centre seeking Naresh’s removal.

The Ordinance however re-established the Centre’s dominance in the Delhi administration, constituting a three-member National Capital Civil Service Authority (NCCSA) with the power to recommend the transfer, posting and vigilance matters related to all IAS and DANICS officers in the Capital.

Although the NCCSA is chaired by the CM, it includes the CS and the Principal Secretary, Home, with all matters before it required to be decided by a “majority of votes of the members present and voting” — which effectively means that the two other members, both bureaucrats appointed by the Centre, can overrule the elected CM on any issue.

Flare-up in conflict

The NCCSA would prove to be the trigger for the bitter face-off raging between the AAP government and bureaucracy.

Earlier this month, a lawyer sent a complaint to the Kejriwal government as well as the Centre, alleging an “exorbitant compensation award” proposed by then district magistrate of Southwest Delhi, IAS officer Hemant Kumar, on Naresh’s watch for a parcel of land in Bamnoli village acquired for the Dwarka Expressway. This award had been set aside by the Delhi High Court on October 31.

The complainant accused the CS of being allegedly instrumental in providing illegal profits to a company linked to his son. Rejecting the allegations, Naresh has called it an alleged AAP bid to “defame” and “malign” him.

As reported by The Indian Express last week, compensation against the acquisition of the 19-acre Bamnoli plot was increased from Rs 41.52 crore to Rs 353.79 crore in May. This led to action against Hemant, even as the complainant alleged that the son-in-law of one of the landowner beneficiaries in this case is the director in a firm that employs Naresh’s son.

Ashwani waded into the row earlier this week, when he publicly defended the CS and obliquely accused the AAP government of playing “dirty politics”.

However, sources in the bureaucracy say that the rift is actually among the babus with the AAP joining in to take advantage after being pushed into a corner by the NCT amendment law and the liquor policy scam. They point out that the Delhi services law provides for the direct appointment of the CS by the Centre.

On November 10, the Delhi government moved the Supreme Court seeking the apex court’s intervention to stay any “unilateral” action by the Centre over the appointment of a CS or extension of his tenure. The matter is slated for hearing on November 20.

“The AAP government filed this petition in the SC within days of the Dwarka Expressway land scam being splashed across the media,”

a senior bureaucrat said. “The attempt is to keep the pot boiling,” he claimed, adding that “The incumbent CS is also awaiting clearance from the Central Vigilance Commission which is a prerequisite for a civil servant to be granted an extension in tenure.”

The division within bureaucracy involving both IAS and DANICS officers has forced many to take sides as those in the middle are increasingly “feeling uneasy”, a senior official said. The officers are also split over the allegations against the CS, with several of them backing him while others raising questioning his role in the case.

Some babus backing the CS say: “AAP knew the scam for a long time but kept silent… Fake news has been spread by some officers who do not want Naresh Kumar to get extension as CS.”

A bureaucrat claimed, “There is no land scam…This is an arbitration and land acquisition matter solely handled at the level of ADM and the matter even goes to DM when there are any grievances or complaints related to award amount,” adding that “This case happened in May and the officer involved (DM Hemant Kumar) has been suspended after a two-three months investigation. Then why is the matter being raised now, that too when only 15 days are left for the CS to retire?”

Echoing his views, another officer charged: “AAP is playing the game carefully because it is already in trouble… It is trying to show all things are being done legally through the Vigilance Minister but now it is a clear political game. And if the CS gets extension, then AAP will play politics by accusing him of doing corruption and benefiting his son.”

During his press conference Ashwani claimed that the allegations against the CS were aimed at scuttling his chances of securing an extension.

Targeting the AAP, a senior officer said, “AAP does not have control over services and vigilance. Why the minister (Atishi) is trying to save the DM who has been suspended… NHAI has not accepted the arbitration award and the money is not transferred…So where is the scam?”

However, another section of bureaucrats alleged that the CS was “misusing” the “power and system”, calling for a fair and thorough investigation into the entire land scam.

“If the company of the CS’s son is linked or involved in the case, then a fair investigation should take place. The case should be reviewed by new officers… Otherwise, it will be an example of misusing power,” said a senior officer.

Flagging that the scam runs into hundreds of crores, another officer said, “The details of all the companies where his (CS’s) son is the director or founder are registered in the Central government’s record… There are also reports of his son’s companies managing solid waste management where tender was tweaked several times…these are just allegations at present but the truth in such matters might get revealed in the coming days forcing the government to take action against the CS.”

Sources cited minutes of the September 20 NCCSA meeting to question why the CM along with two other members signed on Hemant Kumar’s transfer to the Administrative Reforms department.

Some bureaucrats also said: “Giving extension to the CS will stop opportunities for other eligible and deserving officers, who are in line. The entire matter should be reviewed and a correct decision taken.”