So, yesterday Manish Sisodia, the Deputy Chief Minister of Delhi was arrested by the Central Bureau of Investigation (CBI) in the case relating to Delhi State’s excise policy 2021-22. I am not going into the details of that policy and what happened last year from August onwards in this case. In this connection please refer to my earlier blog
https://dailyhappenings.in/liquor-policy-aap/ which was published on 22nd August 2022.
According to CBI, Manish Sisodia was arrested because of his involvement in the destruction of evidence.
The arrest is in connection with alleged corruption in the implementation of the now-scrapped Delhi liquor policy 2021-22. He was arrested under sections 120 B (criminal conspiracy), 477 A (intent to defraud) of the Indian Penal Code (IPC), and Section 7 of the Prevention of corruption act.
The CBI said that Manish Sisodia’s answers were unsatisfactory and he was not cooperating in the investigation. When confronted with evidence by the CBI which included documentary and digital evidences, his only response was ‘ In don’t know’. As per CBI, a few contentious provisions were added to the Delhi Liquor Policy which was not part of the original draft. On being questioned about this, he failed to explain how these provisions were included in the final draft, which in the end became policy.
A statement by an officer who worked in the excise department revealed the role of Sisodia in tweaking the drafts. Forensic examination of seized digital devices reveals that these provisions were received on WhatsApp by an officer. There was no record of discussions/files in the excise department that shows how these provisions were included in the final draft. In addition, the CBI also decided to arrest the senior Aam Aadmi Party (AAP) leader and Deputy CM Manish Sisodia on a bureaucrat’s statement. A top bureaucrat alleged that Manish Sisodia had played a pivotal role in drafting the excise policy.
Manish Sisodia, charged as accused number one in CBI FIR, was earlier questioned on 17th October 2022, a month before CBI filed its chargesheet on 25th November 2022. CBI had not named Sisodia in that chargesheet, as the central probe agency kept the probe open against him and other suspects and accused.
It is alleged that the then AAP communication and media in-charge Vijay Nair, on behalf of AAP leaders, received Rs 100 Cr as kickbacks in advance from a ‘South Group’ whose prominent entities were YSR Congress MP Magunta S Reddy, his son Raghav, TRS MLC K Kavitha, and Aurobindo Pharma director P Saarth Chandra Reddy.
The group partners were allegedly given 65% stakes in Mahandru’s Indo Spirits for the recovery of payments. The stakes were controlled by false representation, concealment of true ownership, and proxies. According to the CBI chargesheet, the wholesale distribution of Pernod Ricard and Diageo was to go to Indo Spirits and Brindco Spirits, respectively. After getting the money back, the 6% kickbacks received from wholesalers were to be shared equally between Mr Nair and Hyderabad businessman Abhishek Boinpally.
Based on the CBI case, the Enforcement Directorate (ED) is conducting a money laundering probe and has arrested nine persons. Its charge sheet states that a portion of the alleged kickbacks was diverted through ‘hawala’ channels for the AAP’s poll campaign in the 2022 Goa Assembly election.
As per CBI, the new excise policy extended an extraordinarily high 12% profit margin for wholesalers and almost 185% margin for retailers. As decided, half of the 12% margin was to be collected from the wholesalers.
After the arrest of Manish Sisodia, various leaders from AAP and other political parties started giving the statements “that it is witch-hunting by BJP through the probe agencies the CBI, and the ED. It is a political vendetta carried out by BJP.
Now, here is the case where prima facie it is very clear that the excise policy was changed to get the benefits of kickbacks through various sources. The AAP government has never explained, why this policy was withdrawn as soon as this scam came into the open if it was not flawed, and the old policy was restored.
Let us wait and watch for further development in this matter.
Waiting for your views on this blog.
Anil Malik
Mumbai, India
27th February 2023.