A Delhi court has extended the judicial custody of AAP leader Manish Sisodia in the Excise Policy Case. Sisodia will remain in custody until May 15. On May 2, Manish Sisodia filed a petition in the Delhi High Court challenging the trial court’s denial of bail in connection with the excise policy case, which is being investigated by the Directorate of Enforcement (ED) and the CBI.
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New Delhi: (On May 7th): The Rouse Avenue Court in Delhi extended the judicial custody of Manish Sisodia, a prominent leader of the Aam Aadmi Party (AAP) and former Deputy Chief Minister of Delhi, till May 15. The extension is related to a Central Bureau of Investigation (CBI) case concerning the Delhi Excise Policy.
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The court has scheduled May 15 for additional arguments regarding the framing of charges against the accused in the case.
On May 2, Manish Sisodia filed a petition in the Delhi High Court challenging the trial court’s denial of bail in connection with the excise policy case, which is being investigated by the Directorate of Enforcement (ED) and the CBI.
The bench led by Acting Chief Justice Manmohan, Advocates Rajat Bharadwaj and Mohd Irshad urgently requested the listing of the matter before the bench.
Previously, on April 30, the Rouse Avenue Court rejected Sisodia’s bail application for the second time, stating,
“This court is not inclined to admit the Applicant to Bail, either regular or interim, at this stage. The application under consideration is accordingly dismissed.” Sisodia has been in custody since February 26, 2023, following his arrest by the CBI. Subsequently, he was also arrested by the ED.
READ ALSO: Delhi Court: Manish Sisodia and Others’ Judicial Custody Extended| Excise Policy Case
The excise policy case also led to the arrests of Delhi Chief Minister Arvind Kejriwal and BRS Leader K Kavitha. According to the ED and the CBI, there were alleged irregularities in the modification of the excise policy, including the extension of undue favors to license holders, the waiving or reduction of license fees, and the extension of the L-1 license without proper authorization.
The probe agencies further claimed that the beneficiaries diverted illicit gains to the accused officials and falsified their accounting records to evade detection. It was alleged that the excise department decided to refund an earnest money deposit of approximately Rs 30 crore to a successful tenderer in violation of established rules.
Additionally, a waiver on tendered license fees was granted from December 28, 2021, to January 27, 2022, ostensibly due to the COVID-19 pandemic, resulting in an alleged loss of Rs 144.36 crore to the exchequer.
On October 30, the Supreme Court denied bail due to questionable financial transactions, specifically a Rs 338 crore transfer. Following this, Sisodia’s request for a review was also turned down on December 14, leading to the filing of the curative petition. Such petitions, intended for reconsideration of judgments believed to have grievous errors, are examined by the judges in private sessions.
Excise Policy 2021-22
The Excise Policy 2021–22, based on recommendations from an expert committee, was introduced by the Aam Aadmi Party Government in Delhi on November 17, 2021. The policy, which marked the government’s withdrawal from the liquor trade, aimed to boost revenues, enhance customer service, and curb the influence of the liquor underworld. It involved the allocation of 849 liquor vends through competitive bidding, with the city divided into 32 zones, each hosting a maximum of 27 vends.
Despite its intentions, the policy faced opposition from various sectors, including civil society, religious organizations, and educational institutions, particularly as it was implemented during the Delta wave of the COVID pandemic. Eventually, in July of the following year, the Delhi government revoked the new excise regime and reverted to the previous liquor policy amid allegations of financial irregularities.
An investigation report by the Chief Secretary of Delhi, dated July 8, 2022, highlighted potential violations of several legal statutes, including the GNCTD Act 1991, Transaction of Business Rules (ToBR) 1993, Delhi Excise Act 2009, and Delhi Excise Rules 2010.
Manish Sisodia Involvement
According to the report by the Delhi Chief Secretary, it was asserted that Manish Sisodia, the Minister responsible for the Excise Department, made and implemented significant decisions and actions that contravened statutory provisions and the established Excise Policy, resulting in substantial financial consequences.
The report further claimed that Sisodia allegedly provided unwarranted financial benefits to liquor licensees even after tenders had been awarded, leading to considerable losses to the government treasury. The Chief Secretary’s report suggested that these actions were undertaken with the objective of favoring private liquor magnates in exchange for personal financial gains, ultimately implicating individuals at the highest levels of government, including Sisodia himself.
Subsequently, in August, the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) against Manish Sisodia and 14 others, citing various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act.
The FIR highlighted substantial payments allegedly made to Sisodia’s close associates by Sameer Mahendru, owner of Indospirits, a liquor trader involved in irregularities pertaining to the framing and execution of the excise policy. In October, Sisodia was summoned by the CBI, where his statement was recorded as part of the ongoing investigation.
Since February 26, 2023, Sisodia has been under custody, facing investigations by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for his alleged involvement in the excise policy scam. The controversy centers around accusations that certain Delhi government officials manipulated liquor licensing procedures to favor specific vendors in return for bribes.
