AAP’s Sanjay Singh arrested: What is the Delhi liquor policy case?

Aam Aadmi Party (AAP) Rajya Sabha MP Sanjay Singh has been arrested by the Enforcement Directorate (ED) in connection with a money laundering investigation in the Delhi government’s now-scrapped excise policy case. The arrest came hours after raids were carried out by the central agency at Singh’s residence today (4 October). This is the second high-profile arrest in the alleged Delhi liquor scam case after senior AAP leader and then Delhi minister Manish Sisodia was apprehended in late February. His several bids to secure bail have failed since then.

VIDEO | AAP MP Sanjay Singh taken away from his official residence after being arrested by the ED in Delhi excise policy case. pic.twitter.com/Bpho7ctjcW

— Press Trust of India (@PTI_News) October 4, 2023

What was the liquor policy and what is the case about? How many arrests have been made so far? Let’s understand in detail. What was Delhi’s new liquor policy? The new liquor policy implemented in November 2021 aimed to remove the Delhi government from the business of selling liquor, allowing only private liquor shops to run in the city. Delhi was divided into 32 zones, with each having 27 liquor vends. As per India Today, 849 liquor vends were given to private companies through open bidding. With the new policy, the Arvind Kejriwal government said it wanted to end the liquor mafia and black marketing, increase government revenue, and provide a better customer experience. The new rules allowed liquor stores to run way after midnight and the vendors could offer unlimited discounts. After the excise policy was enforced, the Delhi government witnessed a 27 per cent upsurge in revenue, generating about Rs 8,900 crore. What is the liquor policy ‘scam’ case? The new liquor policy did not survive for long and was scrapped almost a year later. The Kejriwal government brought the old liquor policy back on 1 September 2022. The step was taken after Delhi Lieutenant Governor (LG) Vinai Kumar Saxena recommended a Central Bureau of Investigation (CBI) probe into the alleged irregularities in the implementation of the new excise policy, which threw Sisodia, the then head of the excise department, directly into the line of fire. AAP’s then education minister Sisodia was accused of giving “undue benefits” to liquor vend licensees in lieu of “kickbacks” and “commissions”, according to a report submitted by Delhi chief secretary Naresh Kumar to LG Saxena. After launching its investigation, the CBI raided Sisodia’s residence last August. The agency named 15 individuals in its FIR filed in connection with the Delhi excise policy 2021-2022, with the AAP leader’s name on top. The FIR alleged that Sisodia, then Delhi excise commissioner Arava Gopi Krishna, and two other senior excise department officials were “instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without the approval of competent authority with an intention to extend undue favours to the licensee post tender”. The ED also joined the case to probe the money laundering allegations. The agency alleged that the AAP collaborated with a “South Group” under which the latter funded the Kejriwal-led party’s Goa election campaign, reported NDTV. The so-called group was to recover this money through the liquor businesses it runs in the National Capital, the ED alleged. K Kavitha, Bharatiya Rastra Samithi (BRS) leader and daughter of Telangana chief minister K Chandrashekar Rao, YSR Congress Party MP M Srinivasulu Reddy’s son Raghav Magunta, and Sarath Reddy of Aurobindo Pharma were accused of being a part of this “South Group”, the news channel noted. The AAP and Kavitha have refuted the allegations. Aurobindo Pharma’s Reddy was arrested by the ED last November. He, along with Raghav Magunta, are now approvers in the case. Magunta was nabbed by the ED in February 2022. Arrests and other accused In its FIR, the CBI has accused Vijay Nair, a former CEO of entertainment and event management company Only Much Louder (OML); Manoj Rai, an ex-employee of wine and spirits giant Pernod Ricard; Amandeep Dhal, the owner of Brindco Spirits; and Sameer Mahendru, the managing director of Indospirits, of being “actively involved in irregularities in framing and implementation of excise policy”, reported Indian Express. Nair and Mahendru were arrested by the CBI and ED respectively last September. The AAP had defended Nair, with Kejriwal calling him “AAP ka chhota sa karyakarta (a mere AAP worker)”. The ex-OML CEO’s links to AAP go back to 2014. The CBI also arrested Abhishek Boinpally, a director with Robin Distilleries, for allegedly lobbying for a businessman. The ED arrested Pernod Ricard’s executive Benoy Babu last November, as per NDTV. In February, the CBI arrested Buchi Babu, the former Chartered Accountant of BRS legislator Kavitha, accusing him of acting on behalf of the “South Group”. He is an approver in the case now. However, the CBI’s biggest arrest came in late February when Sisodia was apprehended regarding the alleged irregularities in the Delhi excise policy. Reactions to Sanjay Singh’s arrest According to Indian Express, Sanjay Singh’s name featured in the ED’s prosecution complaint filed last December. The ED said that Delhi-based businessman Dinesh Arora, who has turned into an approver in the liquor case, claimed that Singh introduced him to Sisodia. “On request of Singh… arranged cheques amounting to Rs 82 lakh (handed over to Sisodia) for collection of party funds for upcoming assembly elections in Delhi,” the complaint alleged, as per Indian Express.  Citing Arora, the ED claimed the businessman said he spoke to Sisodia “five-six times” and met chief minister Kejriwal at his house, along with Sanjay Singh. The AAP has reacted sharply to the action against Singh with Kejriwal terming his arrest “completely illegal”. “This shows Modi Ji’s (Prime Minister Narendra Modi) desperation. They will arrest many more Opposition leaders…”, he wrote on X in Hindi.

संजय सिंह की गिरफ़्तारी बिलकुल ग़ैर क़ानूनी है। ये मोदी जी की बौखलाहट दर्शाता है। चुनाव तक ये कई और विपक्षी नेताओं को गिरफ़्तार करेंगे।

— Arvind Kejriwal (@ArvindKejriwal) October 4, 2023

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“For the last year we have been seeing, there is noise about alleged liquor scam. More than 1000 raids have been conducted and not a single paise was recovered,” the Delhi chief minister reportedly said earlier, adding “Nothing is going to be found from Sanjay Singh’s place too. Elections are coming and they feel (they) are losing, so it appears the last desperate attempt of the losing side”. The Delhi Police installed barricades outside the main gate of Singh’s residence after AAP workers assembled there and raised slogans against the Centre over his arrest, reported Indian Express. “It is sad, but not surprising. Now this series will continue till the election. PM Modi and Amit Shah have made the formal announcement for the 2024 elections. Yesterday, a raid was on NewsClick and all the journalists, today on Sanjay Singh…,” Rashtriya Janata Dal (RJD) MP Manoj Jha told ANI. Jha also met Singh’s father and assured him, “_Koi chinta nahi karni hai (_There’s no need to worry)”.

#WATCH | Delhi | "Koi chinta nahi karni hai..," RJD MP Manoj Jha tells Dinesh Singh - the father of AAP MP Sanjay Singh - as he hugs him at their residence where he arrived to meet them.

Singh was arrested this evening following the ED raid at his residence in connection with… pic.twitter.com/a3tEeYETRj

— ANI (@ANI) October 4, 2023

Delhi Congress president Arvinder Singh Lovely also attacked the BJP-led Central government over the arrest. “Congress doesn’t support any type of irregularities and action should be taken against those found guilty in liquor policy case. If any person is found involved then the person should be arrested. But if a person is being arrested on the basis that he/she is not cooperating in the investigation, then it is a misuse of the agencies. Investigative agencies cannot be used to fulfil political agendas,” he was quoted as saying by ANI. 

#WATCH | Delhi Congress President Arvinder S. Lovely on arrest of AAP leader Sanjay Singh in Delhi liquor policy case

"Congress doesn't support any type of irregularities and action should be taken against those found guilty in liquor policy case. If any person is found… pic.twitter.com/xLpbIlMMmb

— ANI (@ANI) October 4, 2023

On the other hand, the BJP has hit out at the AAP. The saffron party leader Manjinder Singh Sirsa claimed that Sanjay Singh had a “main role” in the liquor scam. “This was the reason that he (Singh) always used to say that ED would raid my house too… AAP is ending due to its corruption…,” The Quint quoted him as saying. With inputs from agencies