Delhi Excise Scam: ED raids multiple locations across India

Enforcement Directorate today raided 40 locations in Delhi and other parts of the country in connection with the Delhi Excise Policy money laundering case.

Several places in Telangana, Maharashtra, Tamil Nadu, Haryana, Uttar Pradesh and Karnataka were searched by the ED, officials told PTI. Around 38 to 40 premises of private individuals and government officials are being investigated by the agencies under the case. Earlier, Delhi Deputy CM Manish Sisodia and other bureaucrats were also named as accused in the scam, however, it has now been rolled back. That's why, this time the raid doesn't include premises linked to Manish Sisodia.

Weeks ago, CBI raided multiple locations, including properties linked to Manish Sisodia, IAS officer and former Delhi excise commissioner Arava Gopi Krishna, and 19 other locations in the alleged irregularities in the Delhi Excise Policy. The action was taken after registering an FIR against 15 people (including Manish Sisodia) in the excise case.

The Delhi Deputy CM also holds key portfolios in the Delhi government, including excise and education.

Irregularities in the Delhi Excise Policy 2021-22

Formulated in November 2022, the Excise Policy 2021-22 was planned based on an expert committee report. Under the policy, the excise department had issued retail licenses for 849 vends across the city, which is divided into 32 zones.

In a report submitted by Delhi Chief Secretary Naresh Kumar in July, the policy was found to violate certain rules and clauses of the GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009 and the Delhi Excise Rules-2010.

Later the policy, brought in November 2021, came under the scanner of Lt Governor VK Saxena. He pointed out the irregularities in its implementation and ordered a probe in July 2022. Delhi LG also recommended a CBI probe into the matter. Afterwards, a total of eleven excise officials were suspended for their involvement in the matter.

Seeing a base on the allegations, Manish Sisodia also demanded a CBI probe into the irregularities in the policy.

During its probe, the central agency will investigate the involvement of any individual or agency in the making of this scheme who later used it to generate any illegal or benami assets, which is considered a "crime under the definition of PMLA", sources told PTI.

It is worth noting that the agency has powers to question, arrest, attach such assets, and prosecute, anyone who is found guilty of the offence of money laundering.

Delhi government's waiver to the licensees

The Chief Secretary's report highlighted the prima facie violations that included "deliberate and gross procedural lapses" to provide post-tender "undue benefits to liquor licensees" through the policy.

There are assumptions that undue financial favours are provided to the liquor licensees after they were provided with the tender, which has caused a loss to the exchequer.

The news agency reported that the excise department has provided a remission of ₹144.36 crore to the licensees on the license fee as a part to relieve them from the loss due to COVID 19.

Moreover, the excise department also refunded the earnest money of ₹30 crore to the lowest bidder for the licence of the airport zone when it was unable to submit the no objection certificate from airport authorities.

"It was in gross violation of rule 48(11)(b) of the Delhi Excise Rules, 2010, which clearly stipulates that the successful bidder must complete all formalities for the grant of the licence, failing which all deposits made by him shall stand forfeited to the government," a source said.

(With inputs from PTI)