Delhi Liquor Policy Case
The Delhi liquor policy case revolves around the changes introduced by the Kejriwal government in November 2021. Under this policy, government outlets were no longer allowed to sell liquor, and private entities could apply for licenses to run liquor stores. The government claimed that this new policy would combat black marketing, boost revenue, and benefit consumers. It also permitted liquor stores to operate beyond midnight and offer unlimited discounts, resulting in increased sales and a 27% rise in revenue for the Delhi government.
However, the BJP, the opposition party in Delhi, strongly criticized the policy, accusing the Kejriwal government of promoting a “liquor culture” and allowing liquor stores to proliferate in residential areas.
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The first signs of trouble emerged when Delhi Chief Secretary Naresh Kumar reported numerous rule violations in the liquor policy in July 2022. He alleged that the policy provided “undue benefits” to liquor sellers and mentioned a ₹144 crore rebate in liquor license fees during the COVID-19 pandemic.
In response to these allegations, Delhi Lieutenant Governor VK Saxena asked the Central Bureau of Investigation (CBI) to investigate the matter, escalating the BJP’s attacks on the AAP-led government. The Delhi government, however, denied the allegations and subsequently withdrew the new liquor policy, leading to the closure of over 400 recently opened liquor stores. Liquor sales returned to government control until a new policy was implemented.
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The investigation took a serious turn when in August 2022, the CBI conducted raids at the home of Manish Sisodia, the former deputy of Arvind Kejriwal. The Enforcement Directorate (ED) also joined the probe to investigate the money trail. The ED’s case was based on a First Information Report (FIR) filed by the CBI against Sisodia and 14 others.
The investigative agencies alleged the existence of a “South Group” that included K Kavitha, the leader of Bharatiya Rastra Samithi and the daughter of Telangana Chief Minister K Chandrashekar Rao, YSRCP MP M Srinivasulu Reddy, and Sarath Reddy of Aurobindo Pharma. The ED claimed that the “South Group” and the AAP had an arrangement in which the former provided funds to the AAP for its Goa election campaign. In return, the “South Group” was supposed to recover this money through liquor businesses it controlled in Delhi, with the AAP being accused of favoring these liquor networks while granting licenses under the new policy.
