The lawyers of Manish Sisodia, former deputy chief minister of Delhi, saw a ray of hope when the court asked them whether Sisodia’s wife is still in the hospital and if so, you should file a separate petition for interim bail. But the hope of Sisodia’s lawyers turned into disappointment when the court fixed July 28 for hearing on the interim bail. However, the Supreme Court issued notice to CBI and ED on the bail petition of Manish Sisodia.
The ex-Dy CM of Delhi Mamish Sisodia is in jail since Feb 26 2023. A Supreme Court bench comprising Justices Sanjiv Khanna, Justice Bela M Trivedi and Justice Ujjal Bhuyan also issued notice on the application filed by Sisodia seeking interim bail to allow him to meet his wife who is suffering from illness. The Court will hear the plea for interim bail on July 28.
It is to be noted that CBI is probing the allegations under the Prevention of Corruption Act, ED is handling the money laundering case under the Prevention of Money Laundering Act. The Delhi High Court denied Manish Sisodia’s Bail in both cases on July 3, 2023. Senior Advocate Dr. Abhishek Manu Singhvi, appeared for Sisodia.
Excise Policy Scam
The series of events leading to Sisodia’s arrest by the CBI began in July 2022 when Delhi Chief Secretary Naresh Kumar submitted a report accusing Sisodia of granting undue advantages to liquor vend licensees in exchange for kickbacks. These funds were allegedly used by the Aam Aadmi Party (AAP) during the Punjab Assembly elections in February that year.
The CBI filed an FIR in connection with the Delhi excise policy 2021-2022, naming Sisodia as the main individual among 15 people. The FIR stated that Sisodia, along with other officials, recommended and made decisions regarding the excise policy without the necessary approvals. They were accused of favouring licensees after the tender process.
The FIR also implicated individuals like Vijay Nair, Manoj Rai, Amandeep Dhal, and Sameer Mahendru, alleging their involvement in irregularities related to the framing and implementation of the excise policy.
The FIR revealed that some licence holders were issuing credit notes to retail vendors with the intention of diverting funds to public servants, while also manipulating their accounts.
In August 2022, the CBI conducted a raid at Sisodia’s residence in connection with the case.
In May 2022, the revised liquor policy, proposed by a group of ministers in the Delhi cabinet and suggested several changes, including home delivery of liquor, extended shop hours, and unlimited discounts. However, before implementation, Chief Secretary Kumar examined the proposal and identified procedural lapses and irregularities.
On July 8, 2022, Kumar sent a report to Sisodia, requesting a response to his concerns. The report was also shared with Delhi Lt Governor VK Saxena and Chief Minister Arvind Kejriwal. The chief secretary also informed the EOW (Economic Offences Wing) about the alleged illegalities and monopolies in the liquor trade and requested an investigation.
The EOW collected digital video recordings of excise department meetings and issued notices to obtain details on the distribution of liquor licenses and the procedure followed to prevent monopolization.
According to the report submitted to the L-G and CM, Sisodia was accused of making unauthorized changes to the excise policy, including granting waivers to the liquor cartel and revising rates, leading to a loss of revenue for the state exchequer.
The report also stated that changes to an implemented policy require approval from the cabinet and L-G, and any changes made without such approval are illegal.
The revised policy, which came into effect in November 2021, aimed to eliminate the liquor mafia and black marketing, increase revenue, improve the consumer experience, and ensure fair distribution of liquor vends. However, certain rules, such as discounts offered by vendors, were temporarily withdrawn due to opposition protests.
The revised liquor policy proposed several changes to the existing policy, including home delivery of liquor, the opening of shops till 3 am, and allowing licensees to offer unlimited discounts. These changes were proposed by a group of ministers (GoM) in the Delhi cabinet on May 2, 2022.
The EOW issued a notice to the assistant commissioner of the excise department, seeking details about the alleged illegal distribution of liquor licences to companies that had violated the terms and conditions of the new excise policy.
It also sought documents and details including the date on which the Delhi Excise Policy 2021-22 had been formulated, and when tenders for the grant of liquor licences under the new policy were floated. T
he EOW asked the department to provide the application forms of all successful applicants that received liquor licences, along with the relevant documents they had submitted. It also asked the department to spell out the procedure it had followed to curb monopolisation and cartelisation in the liquor trade.
According to the report submitted to the L-G and CM, Sisodia allegedly made changes to the excise policy without the approval of the L-G, such as allowing a waiver of Rs 144.36 crore on the tendered licence fee. “Excise department, under direct orders of Sisodia, decided to allow a waiver of Rs 144.36 crore singularly to the liquor cartel, on the tendered licence fee, under the excuse of the Covid pandemic,” the report said.
Officials said that if any changes are made to a policy that has already been implemented, the excise department needs to place them before the cabinet, and forward it to the L-G for final approval. Any changes made without the approval of the cabinet and L-G are illegal, and in violation of the Delhi Excise Rules, 2010 and the Transaction of Business Rules, 1993.
The report also alleged that Sisodia gave undue benefits to liquor licensees by revising the rates of foreign liquor and removing the levy of an import pass fee of Rs 50 per case of beer. This, according to the report, made foreign liquor and beer cheaper for retail, leading to a loss of revenue for the state exchequer. Proposed in 2020, it came into effect in November 2021. Delhi was divided into 32 zones with each zone having 27 liquor vends.
It marked the exit of the government from selling liquor — only private liquor shops would run in the city, and each municipal ward would have 2-3 vends. It aimed to end the liquor mafia and black marketing, increase revenue and improve the consumer experience, and ensure equitable distribution of liquor vends.
The government also made the rules flexible for licensees, such as allowing them to offer discounts and set their own prices instead of selling on MRP fixed by the government. Following this, discounts were offered by vendors, which attracted crowds. After protests by the opposition, the excise department withdrew the discounts for some time.
Manish Sisodia was arrested first by CBI, then ED
Manish Sisodia faced two separate arrests, first by the Central Bureau of Investigation (CBI) on February 26 and later by the Enforcement Directorate (ED) on March 9, in connection with the excise policy.
In the FIR filed by the CBI, Sisodia and others were accused of playing a key role in making recommendations and decisions regarding the 2021-22 excise policy without proper approval, allegedly with the intention of favouring licensees after the tender process.
The CBI stated that Sisodia was arrested because he provided evasive responses and failed to cooperate with the investigation, despite being presented with evidence.
The Enforcement Directorate, on the other hand, alleged that the excise policy was implemented as part of a conspiracy to provide a 12% wholesale business profit to specific private companies, even though such a provision was not mentioned in the Group of Ministers’ meeting minutes.
The agency claimed that there was a coordinated conspiracy led by Vijay Nair and other individuals, including the South Group, to grant unusually high profit margins to wholesalers. According to the agency, Nair acted on behalf of Delhi Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia.
Sisodia’s bail applications for both cases, investigated by the CBI and the ED, were rejected by Special Judge MK Nagpal of Rouse Avenue Courts in Delhi on March 31 and April 28 respectively.
The Delhi High Court denied Sisodia bail in the money laundering and corruption cases. Later, Sisodia filed a bail petition in Supreme Court on July 6, 2023.