Arvind Kejriwal was arrested on the evening of Thursday, 21 March, hours after a team of the Enforcement Directorate (ED) reached the Delhi Chief Minister's residence, in the alleged Delhi liquor policy scam.
Earlier in the day, the Delhi High Court had stated that it would not grant any sort of protection to Kejriwal in regard to the 'coercive action' against him in the excise policy-linked money laundering scam. Follow the live updates on his arrest here.
According to the ED, Kejriwal, along with other top leaders of his Aam Aadmi Party (AAP), 'conspired' with BRS MLC K Kavitha and members of the 'South Group' and allegedly received kickbacks amounting to Rs 100 crore in connection with the policy.
Kejriwal had evaded nine summonses by the ED, resulting in the filing of two cases against him under the Criminal Procedure Code (CrPC) in the court.
So, what exactly is the alleged scam? And what are the charges against the Aam Aadmi Party (AAP) chief? The Quint explains.
What is the 'Excise Policy Scam' in Which Delhi CM Kejriwal Has Been Arrested?
1. What is the Alleged Scam All About?
The Delhi government's Excise Policy 2021-22 – launched on 17 November 2021 – was touted to aid the reform of the retail liquor sector, improve consumer experience, and augment revenue by Rs 9,500 crore.
The new policy introduced by the Arvind Kejriwal government sought to shut down 600 government-operated vends to pave way for privately owned shops – marking the exit of the government from selling liquor.
The policy provided for the granting of retail licenses to 849 liquor vends, including 266 that were privately run, across 32 zones of the city.
Here are some salient reforms introduced by the Delhi's Excise Policy 2021-22:
The government made rules flexible for licencees, allowing them to offer discounts. "The licensee is free to give concession, rebate or discount on the MRP," the new policy stated.
The policy got rid of the iron grilles at the front of most liquor vends in the capital city and allowed buyers to browse and purchase the brands of their choice. For this, the shops had to be spacious, well-lit, and air-conditioned to allow customers a walk-in experience, albeit under camera surveillance.
It allowed home delivery of liquor in Delhi through websites and apps.
It allowed stores to be opened in markets, malls, commercial roads/areas, local shopping complexes, and other such places as long as the standard rules and regulations were followed.
It slashed the number of dry days to three from 21 per year.
It allowed bars in hotels and restaurants to stay open till 3 am.
Expand2. So, What Went Wrong?
The Delhi excise policy scam case stems from a report submitted by Chief Secretary, Naresh Kumar, to Lt Governor Vinai Kumar Saxena in July 2022, hinting at potential procedural irregularities in the policy's formulation. Soon after the said report, the liquor policy was withdrawn by the Delhi government.
The report accused the then Excise Minister Manish Sisodia of making "arbitrary and unilateral decisions" and contended that the implementation of the new policy led to financial losses for the government, while certain leaders and ministers affiliated with the AAP allegedly received kickbacks.
Two separate cases, one initiated by the Central Bureau of Investigation (CBI) and another focusing on suspected money laundering being probed by the ED, were filed.
The investigation was initially handled by the CBI, resulting in Sisodia's arrest in February 2023. Subsequently, the ED assumed responsibility for exploring potential money laundering aspects of the policy.
The violations included "deliberate and gross procedural lapses" to provide post-tender "undue benefits to liquor licensees" through the policy.
"A waiver of Rs 144.36 crore on tendered licence fee, citing effects of COVID-19, was given to licensees despite the fact that no specific provision for compensation in the form of reduction in tendered licence fee was available in the tender document. This resulted in blatant undue benefits to licensees and loss to the public exchequer," the report claimed.
The document also reportedly took note of various decisions made by officials of the excise department without prior permission of the council of ministers or the L-G.
Expand3. Which Other Leaders Have Been Arrested in Connection with the Case?
Following the CBI's identification of Sisodia and 14 others, including the AAP's communications in-charge Vijay Nair, in its FIR, the ED informed a court in March about the alleged proceeds of crime exceeding Rs 292 crore and the need to establish the modus operandi behind these purported financial irregularities.
Apart from Manish Sisodia, who was arrested in February 2023, AAP Rajya Sabha MP Sanjay Singh and Vijay Nair (accused of being a middleman between the 'South Group') from the AAP have also been arrested in the case.
The ED also claimed that AAP leaders received kickbacks to the tune of Rs 100 crore from a group of individuals identified as the "South Group", including Sarath Reddy, Raghav Magunta, and Magunta Srinivasulu Reddy.
Last week, K Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of former Telangana Chief Minister K Chandrasekhar Rao, was allegedly held for being a part of this very 'South Group'.
Expand4. What Are the Allegations Against Kejriwal?
After Kavitha's arrest on 18 March this year, the ED claimed for the first time that Kejriwal was a "conspirator" in the alleged scam.
The Indian Express reported an ED spokesperson as saying the that its probe revealed that Kavitha, along with others, conspired with the top leaders of AAP, including Kejriwal and Sisodia, for getting favours in the Delhi excise policy formulation and implementation. In exchange for these favours, the spokeperson added, "Kavitha was involved in paying Rs 100 crore to the AAP leaders."
Earlier, in a supplementary prosecution complaint, the newspaper reported, the ED had alleged that the Delhi CM spoke to one of the main accused, Sameer Mahendru, over a video call and asked him to continue working with co-accused Vijay Nair whom he referred to as "his boy."
(With IANS inputs.)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)
Expand
What is the Alleged Scam All About?
The Delhi government's Excise Policy 2021-22 – launched on 17 November 2021 – was touted to aid the reform of the retail liquor sector, improve consumer experience, and augment revenue by Rs 9,500 crore.
The new policy introduced by the Arvind Kejriwal government sought to shut down 600 government-operated vends to pave way for privately owned shops – marking the exit of the government from selling liquor.
The policy provided for the granting of retail licenses to 849 liquor vends, including 266 that were privately run, across 32 zones of the city.
Here are some salient reforms introduced by the Delhi's Excise Policy 2021-22:
The government made rules flexible for licencees, allowing them to offer discounts. "The licensee is free to give concession, rebate or discount on the MRP," the new policy stated.
The policy got rid of the iron grilles at the front of most liquor vends in the capital city and allowed buyers to browse and purchase the brands of their choice. For this, the shops had to be spacious, well-lit, and air-conditioned to allow customers a walk-in experience, albeit under camera surveillance.
It allowed home delivery of liquor in Delhi through websites and apps.
It allowed stores to be opened in markets, malls, commercial roads/areas, local shopping complexes, and other such places as long as the standard rules and regulations were followed.
It slashed the number of dry days to three from 21 per year.
It allowed bars in hotels and restaurants to stay open till 3 am.
So, What Went Wrong?
The Delhi excise policy scam case stems from a report submitted by Chief Secretary, Naresh Kumar, to Lt Governor Vinai Kumar Saxena in July 2022, hinting at potential procedural irregularities in the policy's formulation. Soon after the said report, the liquor policy was withdrawn by the Delhi government.
The report accused the then Excise Minister Manish Sisodia of making "arbitrary and unilateral decisions" and contended that the implementation of the new policy led to financial losses for the government, while certain leaders and ministers affiliated with the AAP allegedly received kickbacks.
Two separate cases, one initiated by the Central Bureau of Investigation (CBI) and another focusing on suspected money laundering being probed by the ED, were filed.
The investigation was initially handled by the CBI, resulting in Sisodia's arrest in February 2023. Subsequently, the ED assumed responsibility for exploring potential money laundering aspects of the policy.
The violations included "deliberate and gross procedural lapses" to provide post-tender "undue benefits to liquor licensees" through the policy.
"A waiver of Rs 144.36 crore on tendered licence fee, citing effects of COVID-19, was given to licensees despite the fact that no specific provision for compensation in the form of reduction in tendered licence fee was available in the tender document. This resulted in blatant undue benefits to licensees and loss to the public exchequer," the report claimed.
The document also reportedly took note of various decisions made by officials of the excise department without prior permission of the council of ministers or the L-G.
Which Other Leaders Have Been Arrested in Connection with the Case?
Following the CBI's identification of Sisodia and 14 others, including the AAP's communications in-charge Vijay Nair, in its FIR, the ED informed a court in March about the alleged proceeds of crime exceeding Rs 292 crore and the need to establish the modus operandi behind these purported financial irregularities.
Apart from Manish Sisodia, who was arrested in February 2023, AAP Rajya Sabha MP Sanjay Singh and Vijay Nair (accused of being a middleman between the 'South Group') from the AAP have also been arrested in the case.
The ED also claimed that AAP leaders received kickbacks to the tune of Rs 100 crore from a group of individuals identified as the "South Group", including Sarath Reddy, Raghav Magunta, and Magunta Srinivasulu Reddy.
Last week, K Kavitha, Bharat Rashtra Samithi (BRS) leader and daughter of former Telangana Chief Minister K Chandrasekhar Rao, was allegedly held for being a part of this very 'South Group'.
What Are the Allegations Against Kejriwal?
After Kavitha's arrest on 18 March this year, the ED claimed for the first time that Kejriwal was a "conspirator" in the alleged scam.
The Indian Express reported an ED spokesperson as saying the that its probe revealed that Kavitha, along with others, conspired with the top leaders of AAP, including Kejriwal and Sisodia, for getting favours in the Delhi excise policy formulation and implementation. In exchange for these favours, the spokeperson added, "Kavitha was involved in paying Rs 100 crore to the AAP leaders."
Earlier, in a supplementary prosecution complaint, the newspaper reported, the ED had alleged that the Delhi CM spoke to one of the main accused, Sameer Mahendru, over a video call and asked him to continue working with co-accused Vijay Nair whom he referred to as "his boy."
(With IANS inputs.)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)