Aam Admi Party‘s Apocryphal Abkari Policy

AAP came to power propagating a non-corruptive government but the present ongoing issues prove that they are not in line of their promises. The liquor excise policy is such an example of it. Once the miscreation’s were exposed, they started blaming the BJP and the LG. Coming to the liquor (abkari) policy of the AAP government the time line is described in Figure 1. The AAP government proposed the need to change the existing policy to prevent corruption, stamp down the liquor mafia, prevent black marketing, increase the revenue to the government, bring transparency and the need for government to stay away from business. With these motives the initial thought seeded up in September 2020 where a government felt a need of new liquor policy. Based on this an expert panel was formed in October 2020, to draft new guidelines for liquor policy. The drafted new policy was kept in website for public opinion from December 2020 till January 2021. In the February and march 2021, council of minister formed the group of ministers and studied the policy. In April 2021, cabinet approved and was sent to Lieutenant governor Mr. Anil Baijal then for approval.  LG had raised few tweaks as mentioned in Fig.3 which was later addressed and approved. The new policy was implemented from November 16, 2021.

The various modifications described in the new policy include to provide walk in facility for the costumers to purchase liquor with a target to promote alcohol consumption and thereby increase states revenue keeping in Delhi public health in task. The target kept by the Delhi government was to minimum increase the revenue by 20% from the previous year.  The excise duty and VAT was reduced and the licence fee was increased and a process of bidding was brought. Previously 4 government agencies Delhi state Industrial and infrastructure development corporation (DSIIDC), Delhi tourism and transportation development corporation (DTTDC), Delhi consumers cooperative wholesale stores (DCCWS) and Delhi State civil supplies corporation (DSCSC) used to sell liquor in 475 of total 864 stores. With the new policy, licenses were based zone wise and licences for 849 liquor vends were issued in open bidding for private firms for 849 shops. The city was divided into 32 zones with each zone having 27 vends and each bidder was allowed to bid for a maximum of 2 zones. Totally the Delhi government wants to stay from liquor business.  The policy was extended 3-4 times for a period of 2 months initially on March 31, second time on May 31 and one more time for a month on July 31.

What were the irregularities in the policy?

1. With a concept of equidistribution of vends, there came shops near temples, schools and other “ non-conformal areas” leading to protests from locals and non-compliance from municipal corporations. This led the government to open new vends in conformal areas without approval from competent authority.
2. Extension of licences without any hike on fee, on proper approval from cabinet or the LG
3. The department had refunded Rs.30 crore for a L1 applicant who could not  establish vend near airport .
4. A waiver of Rs.144 crore to private vendors was given in the name of COVID pandemic
5. Undue benefits to liquor licensees by waiving the import pass fee of Rs 50 per beer case
6. Financial quid pro quo suspected with money diverted for Punjab elections?
7. June5, 2022à New policy 2022-23approved by cabinet but not sent to LG for approval
8. Because of poor planning and not being properly rolled out though last year , the government got a revenue of Rs. 8917 crore against the reserve price of Rs. 7041 crore during the bidding process. This financial year for the first quarter  the government received 37.51% less than the budget estimate of Rs 2,375 crore of which,  Rs.980 crore  is a refundable security deposit.
9. Because of poor implementation, the target number of vends to be established have not been achieved. Initially there were 644 vends, the number decreased to 468 by July 31 and by August 19 the number declined to 342 stores with licensee giving up shops in 15 zones.
10. Also extended hours, promoting alcoholism , spoiling the youth questioned the new policy benefits
11. Commission was  increased from 2 to 12% to government.
12. Abandoned companies are allowed for bidding in manufacturing liquor.
13. ED is probing 2 payments: Rs. 1 crore paid by Sameer Mahendru MD of Indospirit group to Dinesh Arora and payment of Rs. 2-4 crore to Arjun Pandey ( close aids of Manish Sisodia)

Who have raised alarm against the new policy?

1. Courts were approached as vends have come near hospitals, schools , temples with long queues clogging the roads
2. The Chief secretary Naresh Kumar found “ procedural lapses and irregularities” in the implementation of new policy and was reported to Chief minister Aravind Kejriwal, LG and Delhi Police’s Economic offences wing to investigate.
3. Depending on the CS report , the LG had requested for CBI probe.

A Sting operation by BJP party revealed 80% of the profit need to be given to Aravind Kejriwal and Manish Sisodia were to be given. The sting operation features Kulvinder Marwah, father of Sunny Marwah, accused number 12 in the scam. Its time for AAP government to take action on all the involved in this scam. With the liquor scam out, AAP government which came to power on eradicating corruption turned out to be a party of  Ommission, commission, recission (U turn) and demolition.