Explained: CBI Probe Into Delhi Excise Policy, AAP Claim Of 'Operation Lotus', And BJP's Corruption Charges

The Aam Aadmi Party (AAP) on Tuesday claimed that the Bharatiya Janata Party (BJP) approached its MLAs with offers of Rs 5 crore to switch parties and topple the AAP government in Delhi. 

The claim by AAP comes in the midst of Central Bureau of Investigation's (CBI) probe into the alleged irregularities in the formulation and execution of the now-scrapped Delhi excise policy. The AAP and BJP are sparring over the alleged scam, with Delhi Deputy Chief Minister Manish Sisodia, who is among the 15 people accused by the CBI, alleging that the BJP offered him the post of Delhi Chief Minister if he switched parties. 

PTI also quoted AAP sources as saying on Tuesday that the party has audio recording of BJP's offer to Sisodia. The BJP has rejected these claims and has termed AAP's assertions as lies. It has also said that such statements are an attempt by AAP to deflect attention from corruption charges.

While the AAP and BJP exchange allegations, the CBI continues its investigations into the case. The CBI has questioned at least four accused in the case so far, including the key accused Sameer Mahendru. 

Here we explain what's the Delhi excise policy case, what allegations BJP and AAP are trading, and what's the status of the ongoing CBI investigation. 

AAP claims 'proof' of BJP's Operation Lotus

Besides claiming that the BJP offered Rs 5 crore to AAP lawmakers to topple the governmnt, the AAP promised a "big reveal soon".

"Everything will be revealed at the right time. The party's top leaders will decide when and how," NDTV reported AAP's Saurabh Bharadwaj as saying on Tuesday in a press conference. 

The AAP claimed that BJP was attempting an Operation Lotus in Delhi which has failed. Operation Lotus is a term the Opposition and media use to refer to BJP's alleged toppling of governments in states, such as in Karnataka and Madhya Pradesh earlier, where the BJP formed government after previous governments collapsed. 

AAP sources also told PTI that the party has audio recording of the offer to Sisodia.

"We have the audio recording of the BJP's offer and will make it public to expose the saffron party when the time comes," one of the sources told PTI.

While the AAP levelled these charges at BJP, the BJP continued to press corruption charges at AAP. BJP MP Parvesh Sahib Singh Verma alleged that AAP government ignored expert committee on the excise policy and caused massive loss to exchequer. He also claimed that while Delhi government did not offer any rebate to small businesspersons, it offered discounts to liquor traders.

Verma alleged the panel recommended against opening liquor vends in non-conforming areas like villages and colonies without commercial markets, but the government ignored all these suggestions.

He said, "The policy says the license fee should be forfeited if the applicant does not accept the license after winning the bid within a stipulated time. The AAP government returned Rs 144 crore to such persons but did not waive a single rupee of small businessmen during the Covid pandemic."

Verma further claimed that the policy caused a loss of Rs 6,500 crore to government exchequer. 

What's Delhi Excise Policy under scanner?

The case pertains to the Delhi Excise Policy 2021-22. It was scrapped on July 30 after Delhi Lieutenant Governor VK Saxena recommended a CBI inquiry into the alleged irregularities in the policy. 

The policy was implemented on November 17 2021. Under the policy, Delhi was divided into 32 excise zones and retail liquor licenses were issued to private players for 849 vends. It marked the exit of government from liquor business in Delhi. 

"It aimed to end the liquor mafia and black marketing, increase revenue and improve consumer experience, and ensure equitable distribution of liquor vends," reported The Indian Express. 

The Delhi government also gave certain relaxation to sellers, such as the permission to offer discounts to consumers to boost sales and to set their own prices irrespective of the MRP of the product. 

What are the allegations over Delhi excise policy?

Lieutenant Governor VK Saxena last month recommended CBI probe over alleged violations of rules and procedural lapses in the formulation and implementation of the Excise Policy 2021-22. Saxena's action was based on a report submitted by Delhi Chief Secretary Naresh Kumar.

Deputy Chief Minister Manish Sisodia is under the scanner as he holds the excise portfolio in the Delhi Cabinet. 

Kumar's report alleged that Sisodia provided undue benefits to liquor vend licensees in lieu of "kickbacks" and "commissions" that were allegedly used by AAP in the Punjab Assembly elections in February, reported The Express. 

The CBI lodged the FIR in the case on August 17 and raided 31 locations across seven states and Union territories on August 19, including the residence of Sisodia in Delhi.

The CBI has also alleged that Sisodia and excise officials gave undue benefits to liquor license-holders. It has also alleged that people in the liquor business were "actively involved in irregularities in framing and implementation of excise policy". Such accused include Vijay Nair; Manoj Rai, a former employee of wine and spirits giant Pernod Ricard; Amandeep Dhal of Brindco Spirits; and Sameer Mahendru of Indospirit.

Status of CBI probe into Delhi Excise Policy

The CBI on August 19 raided 31 locations across seven states and Union territories, including residence of Manish Sisodia in Delhi. The residences of IAS officer and former Delhi excise commissioner Arava Gopi Krishna was also raided. Officials also claimed that "incriminating" documents, articles, and digital records were also recovered during the raids.

The CBI on Monday questioned key accused Sameer Mahendru. The CBI in its FIR has mentioned two instances where Mahendru allegedly made payments totalling about Rs 4-5 crore to "close associates" of Sisodia.

Sisodia's "close associates" —Amit Arora, director of Buddy Retail Pvt. Limited in Gurugram; Dinesh Arora and Arjun Pandey— were "actively involved in managing and diverting the undue pecuniary advantage collected from liquor licensees" to the accused public servants. The CBI has alleged that Radha Industries managed by Arora received Rs 1 crore from Mahendru.

Officials said that the CBI has already questioned Hyderabad-based businessman Arun Ramachandra Pillai once while Mahendru was questioned on Monday again in connection with the case.

The CBI earlier claimed: "Source further revealed that Arun Ramchandra Pillai used to collect undue pecuniary advantage from Sameer Mahendru for onward transmission to the accused public servants through Vijay Nair. A person named Arjun Pandey has once collected a huge cash amount of about Rs 2-4 crore from Sameer Mahendru on behalf of Vijay Nair."

The Union Home Ministry on Monday suspended former Delhi Excise Commissioner Arava Gopi Krishna and former Deputy Excise Commissioner Anand Tiwari in the case. Both are among the accused listed by the CBI. 

After questioning businesspersons, the CBI is now expected to summon 11 officials of the Delhi excise department who were involved in making and implementing the policy, reported The New Indian Express on Tuesday. These officials included Krishna and Tiwari mentioned above. 

"The FIR alleged that the liquor barons were in close contact with accused public servants and were regularly lining their pockets," reported The New Indian Express.

The ED might also get involved

The CBI has formally shared the copy of its FIR with the Enforcement Directorate (ED) and it's believed that the agency might also get involved in the case.

If and when the ED gets involved, the CBI would be expected to pursue the criminal aspects of the case whereas the ED would be expected to pursue the money laundering aspects of the case.

The ED is understood to be examining details of the CBI case, involvement of various government officials and private individuals and the possible trail of illegal money generated in the process before it files a formal case. 

If and when ED starts its investigation, it will analyse if individuals and companies who were involved in the policy making and related entities generated any "proceeds of crime under the definition of PMLA [Prevention of Money Laundering Act, 2002]" and if there was any possible creation of illegal or benami assets, sources earlier told PTI.

(With PTI inputs)