DNA Explainer: What is 'Delhi Liquor Policy' case in which CBI arrested Manish Sisodia?

Central Bureau of Investigation (CBI) Sunday arrested Delhi Deputy Chief Minister Manish Sisodia after around eight hours of interrogation regarding the alleged irregularities in the Delhi excise policy 2021-22 which was scrapped last year.

The central agency has said that the arrest was made after Sisodia didn’t cooperate in the investigation and gave evasive replies. Sisodia is the head of Delhi's excise department and that's why he is being questioned by CBI. 

The central probe agency said that the now-scrapped policy suffered from irregularities both in its formulation and implementation. It has been alleged that the policy was intended to benefit people with links to the AAP.

In July 2022, Delhi Chief Secretary Naresh Kumar submitted a report to Lt Governor Vinai Kumar Saxena, accusing Sisodia of providing undue benefits to liquor vend licensees. Later, Delhi Lieutenant Governor VK Saxena ordered a CBI probe into the alleged rule violations and procedural flaws in the implementation of the excise policy.

In August, the CBI registered an FIR in a special court against Manish Sisodia and 14 others under various sections of the IPC, including 120B (criminal conspiracy) and 477A (falsification of records), and section 7 of the Prevention of Corruption Act.

What was Delhi's liquor policy 2021-22?

The now-scrapped policy was formed on the basis of an expert committee report. The AAP government in Delhi implemented it on November 17, 2021. Under the new policy, 849 liquor vends were awarded to private companies through open bidding.

The city was divided into 32 zones, each with a maximum of 27 vends. Instead of individual licences, bidding was done zone-by-zone.

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With this new policy, the AAP government exited the liquor business. The aim of the policy was to increase government revenues, better customer experience and to end black marketing. After the implementation of the new excise policy 2021-22, the government’s revenue increased by 27 per cent, generating around Rs 8,900 crore.

However, the Delhi government had to roll back the new excise regime in July last year. It shifted to the old liquor policy amid controversy.