Delhi government scraps liquor policy after multiple probes

The old liquor policy is likely to be back in force from August 1, 2022, sources said.
Image used for representational purpose only. (Photo | AP)
Image used for representational purpose only. (Photo | AP)

NEW DELHI: The AAP government in Delhi on Friday scrapped its New Excise Policy 2021-22 following multiple enquiries, including those by the CBI and Economic Offences Wing of Delhi Police, into charges of "undue financial favours to liquor licensees" and other "major decisions/actions in violation of statutory provisions, that had huge financial implications."

The old liquor policy is likely to be back in force from August 1, 2022, sources said.

TNIE was the first to report that the city government’s liquor policy "extended wrongful gains and favours to liquor wholesalers in Delhi, at the cost of state’s revenue."

In a letter marked "Topmost Priority" to the state’s excise commissioner Krishna Mohan Uppu, Delhi Finance Secretary Ashish Chandra Verma on Friday said, "Reference is invited to the directions of Hon’ble Dy CM dated 28.07.2022 vide which it has, inter alia, been directed to revert to the old regime of excise policy for a period of six months till a fresh Excise Policy is in place."

The letter further said, "Considering that the timelines are very short, you, while taking other necessary actions in the matter, may coordinate immediately with the heads of the DSIIDC, DTTDC, DCCWS, DSCSC to get the following information prepared latest by end of today (i.e., 29.09.2022) in the following format separately for all such four organisations."

The information sought from the excise commissioner includes the name of the old vend and its location, staff deployed in the previous regime, whether the premises where the vend was located were rented or owned by the public sector undertaking, and whether the premises were still vacant or occupied. Copies of the finance minister’s letter have also been sent to the heads of the four Delhi government PSUs which were earlier engaged in running the liquor vends.

The Delhi government had implemented a new excise policy on November 15, 2021 whereby the above-mentioned four PSUs were withdrawn from the liquor business and the entire liquor trade was handed over to the private sector. The government order today directs the excise commissioner to bring back the state PSUs into the liquor business.

Sources said the new liquor policy has been scrapped to stonewall investigations and prevent action against Deputy Chief Minister Manish Sisodia who was the head of the group of ministers that drafted the new excise policy.

The state government’s new excise policy generated protests by retailers. As many as 10 zonal retailers out of the total of 32 zones either surrendered or refused to renew their licenses accusing the government of favouring wholesalers. The government allegedly violated the policy on multiple counts leading to Delhi lieutenant governor V K Saxena ordering a CBI probe.

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