According to sources, there allegedly were “substantive indications towards a financial quid pro quo” at the top political level and the excise minister (deputy chief minister Manish Sisodia) “took and got executed major decisions in violation of the statutory provisions” and notified the excise policy that had “huge financial implications”.
Some of the lapses alleged by the chief secretary are in the FIR registered by the CBI in the case.
Sources said that the report of another inquiry ordered by the LG to probe the “role played by officials and civil servants” also found the excise department officials allegedly acted as “proactive conduits in formulating and implementing illegal orders at the behest of the minister in-charge”.
In the first report, submitted on July 8, 2022, Kumar flagged seven “procedural lapses” in the policy implementation. It claimed the excise department allowed a waiver of Rs 144.4 crores to the liquor cartel on the tendered licence fee on account of the Covid-19 pandemic without the tender document containing such a “specific provision” for compensation.
“Despite specific recommendation of the accounts branch, minister in-charge vide direction dated 01.02.2022 directed providing of pro rata licence fee relief to closed shops,” sources quoted the report as saying.
The excise department also refunded earnest money of Rs 30 crore to the lowest bidder for the Airport Zone licence after it failed to obtain the no-objection certificate from the authorities. “This was in violation of Rule 48(11)(b) of the Delhi Excise Rules, 2010, which stipulates that the successful bidder must complete all formalities for grant of licence failing which all deposits made by him are forfeited to the government,” explained a source.
“Officials equated the failure of the successful tenderer in obtaining the NOC with the unsuccessful bids to justify the return of earnest money. The return of the earnest money was decided by Sisodia in a note dated July 9, 2021,” the source added.
According to officials, Kumar also questioned the excise department’s order of November 8, 2021 revising the formula for the calculation of foreign liquor rates and removal of the levy of import pass fee of Rs 50 per case on beer without the approval of the competent authority, thus causing loss of revenue to the state exchequer.
A source also said that on October 28 last year, the finance department asked for a comparative statement on impact on excise revenue, MRP, profit margin of wholesalers and retailers due to the changes to be placed before the group of ministers. But on November 1, Sisodia had overruled it and approved the proposal.
The chief secretary also noted that the number of dry days under the new policy were reduced from 21 to just three without the cabinet’s approval and no effort was made to levy additional licence fee for the increased number of sale days. A similar proposal by the excise department was shot down by Sisodia in 2015.
Sources said Kumar also observed that the two extensions of two months each given to the excise policy on March 31 and May 31 and to the retail licencees did not have the cabinet’s approval and was done without soliciting the LG’s opinion.
“Such extension without any increase in tendered licence fee contravened the proposal placed before and approved by the council of ministers on June 23, 2021 that at the time of end of 2021-22, the licence fee might be increased after considering real time actual sale data,” said a source.