Why was it investigated? Why is Deputy Chief Minister Manish Sisodia under the scanner of CBI?
Why was it investigated? Why is Deputy Chief Minister Manish Sisodia under the scanner of CBI?
the story So Far: The New Delhi Excise Policy 2021-22, launched last November, sought to ensure optimum revenue for the state government, counter the sale of spurious or illicit liquor and change the consumer experience, amid protests and “procedural loopholes”. Participated in widespread accusations. This has forced the government to repeal it with effect from August 1, 2022. On 22 July, Delhi’s Lieutenant Governor Vinay Kumar Saxena recommended a CBI inquiry into the new policy, which culminated in raids on the premises of Manish, the deputy chief minister of the Delhi government. Sisodia, who holds the Excise Department. His role for allegedly providing “undue financial benefits” to private liquor licensees is under investigation, a charge denied by the Aam Aadmi Party (AAP) leadership.
What were some of the changes made in the new policy?
The new policy marked the state government’s exit from the retail sale of liquor in the city. This sought to provide wine consumers with more choice by opening up more wine vendors – offering both popular and niche brands. It sought to provide a “better environment” especially for women citizens while purchasing liquor through dedicated liquor shops.
essence
The New Delhi Excise Policy 2021-22, which sought to ensure optimum revenue for the state government and counter the sale of spurious or illicit liquor, made widespread allegations of “procedural lapses”. This has forced the government to repeal it with effect from August 1, 2022.
Under the new policy, the number of liquor shops in Delhi would have increased from about 630 to 850 – all privately owned and operated. A person can have more than one liquor retail license and the “heavily regulated” excise duty regime was to be eased for business.
The revised excise policy was embroiled in controversy as private liquor shops were opening across the capital. Many of these shops were sealed by the MCD for various violations related to non-conforming areas where certain businesses such as retail sale of liquor are not allowed.
In addition to reducing the number of dry days in Delhi from 20 to just three, it also sought to lower the alcohol consumption age in Delhi from 25 to 18 – but did not proceed with the move as it required a legislative amendment. Will be , The new policy also sought to ensure equitable distribution of liquor shops in the city to two liquor shops in each municipal ward so as to bridge the gap between “overserved” and “underserved” areas. Under the new policy, the number of liquor shops in Delhi would have increased from about 630 to 850 – all privately owned and operated. A person can have more than one liquor retail license and the “heavily regulated” excise duty regime under the previous policy was simplified for ease of doing business in the overall business. Another change in the policy was to make wholesale licensees (L1) independent of manufacturers; The revised policy allowed independent entities to set up wholesale stores and obtain franchises from various manufacturers. The revised policy was implemented on November 17, 2021 and remained in force till July 31, 2022.
Why and how did the new policy become embroiled in controversy?
With the opening of private liquor shops across the capital, the revised excise policy was embroiled in controversy as soon as it was implemented. While some areas witnessed protests against citizens opening liquor shops in their neighbourhoods, the Bharatiya Janata Party (BJP) and Congress protested against opening of liquor shops in places near schools, religious places and unauthorized areas. did. ,
Many of these were sealed by the BJP-led Municipal Corporation of Delhi (MCD) for various violations related to non-conforming areas where certain businesses such as retail sale of liquor were not allowed as per the provisions of the Master Plan of Delhi. which controls the city. Planning, and implementation in the city. After the implementation of the policy, 134 court cases were filed, largely regarding retail outlets in unauthorized or non-conforming areas, regarding exemptions and schemes such as 1+1, duty round off and payment of license fee. Out of about 850, only 468 liquor shops could open, due to which many vendors surrendered their licenses, causing loss of revenue to the government. On the other hand, vendors exiting the market rapidly, effectively brought Delhi’s liquor trade back to square one – leading to windfall gains for the existing players in trade and cartelisation.
Why was the new policy suddenly withdrawn?
In July, the Lieutenant Governor of Delhi recommended a CBI inquiry into the new policy after receiving a report from the Chief Secretary, which was also sent to Chief Minister Arvind Kejriwal, stating that the policy was based on alleged violations and “deliberate and gross procedural lapses”. “was rife with. In what began as an assessment of deviation from administrative procedures, Mr Sisodia, who holds the excise portfolio, was brought under the lens of allegedly providing “undue financial benefits” to liquor licensees. The CBI has booked liquor business owners and 15 others, including event media barons, for corruption – allegedly involved in shaping the new policy – and “undue pecuniary benefits to public servants”, bureaucrats and subordinate government officials. to expand Around midnight of July 31, the LG received a proposal from the Delhi cabinet to scrap the revised policy and bring back the old policy for six months, until a way forward could be found. The new policy, as per the proposal, has not been able to achieve its desired objective of “getting more revenue” and several issues were flagged and were subjected to detailed scrutiny and investigation by agencies.
How much revenue does Delhi get from excise?
According to official figures, a little over ₹4,000 crore was generated in excise revenue in 2019-20. Between November 2021 and July 2022, it earned around ₹5,400 crore, but the controversy led to a drop in sales and revenue. With both retail and wholesale licensees giving up their licenses or opting not to renew them, the Delhi government admitted it was incurring losses of over ₹193 crore on a monthly basis.