INTRODUCTION
Arvind Kejriwal has been an eminent figure in Indian Politics. He is widely recognised as the Chief Minister of India’s capital city, New Delhi. He is well known for his relentless fight against corruption and his commitment to transparent governance. However, unfortunately, recently his administration has been entangled in a major controversy known as the “liquor scam”. This scam revolves around allegations of corruption and financial faults concerning the Delhi government’s policy to commercialise the liquor business. As the case proceeds and more information about it comes to light, answers to various important questions about the government’s transparency, accountability, and political manipulation are nowhere to be found. Through this blog, the intricate details of the scam, the examination of its origins, and the broad impact that it has on the political landscape of Delhi have been explored to understand the complex nature of this high-profile scandal.
BACKGROUND
Delhi’s liquor policies have been developed in the first place to regulate, the sale, consumption and distribution of alcohol with the primary aim to curb the illegal rackets concerning the liquor business, and to give a thrust to government revenues. The Excise Department of the Delhi state government continues to play a crucial role, in implementing these regulatory policies, to ensure positive changes over the years leading to an increase in transparency and efficiency. Kejriwal’s debut in national politics was mainly due to his vision and commitment towards achieving a corruption-free administration, which is evident from the active role he played in the India Against Corruption Movement. As a chief minister of the state, he has repeatedly implemented and executed policies, which largely focus on promoting public welfare, and were also inclusive of the changes to be brought about in the liquor business to boost state revenue and to ensure effective management of the industry as a whole. One of the main key political figures involved in implementing these policies was Manish Sisodia, the deputy of Arvind Kejriwal who has been instrumental in the formation and implementation of such policies. A detailed examination of the policies reveals both their strengths and weaknesses. While Kejriwal’s policies aim very much towards the achievement of a corruption-free administration, the very controversies associated with the implementation of such policies point towards the lack of transparency in the government[1]. While some praise the liquor policies put up by the CM’s administration, others fear potential corruption.
THE ALLEGATION
The liquor scam involves several allegations that accuse Kejriwal’s government of manipulating the liquor policies in exchange for bribes, in such a way that it is devised only to benefit only certain private entities. These manipulations are reported to have been responsible for causing significant financial losses on the government’s side, and an advantageous market for certain private businessmen. In 2021, a new excise policy on liquor was introduced and implemented in 2022 which gave rise to suspicions and invited investigative reports to be filed, and various whistleblower sources exposed the defects in the policy, and the central investigative agencies were involved in 2023. Shortly after this, Arvind Kejriwal was arrested in March 2024 which was a significant development in the case[2].
LEGAL PROCEEDINGS SO FAR:
Several national agencies have been thoroughly investigating the Delhi liquor scam, notably including the Central Bureau of Investigation and the Enforcement Directorate. Multiple extensive raids have been carried out as and when has been deemed necessary by the authorities and significant pieces of evidence have been gathered. Several interrogations have been carried out to mark out the ones associated with the case. Evidence gathered so far includes questionable financial transactions, private communications and testimonies obtained from important witnesses. Court proceedings have commenced and multiple hearings have been carried out, leading to another significant development in the story, with Kejriwal being granted bail by the court but remaining accused of the scam[3]. Kejriwal and his government have constantly denied the allegations against them, claiming the probable existence of a political motive to defame and frame Kejriwal in such a scam. They have argued strongly that their intentions to carry out the policies were to bring order and regulations in the liquor industry and not plot for personal gain. The legal developments have so far been reported as above and this is a developing story so updates can be expected over the upcoming months.
POLITICAL IMPACT AND THE PUBLIC OPINION
The Delhi liquor scam is undoubtedly responsible for tarnishing Kejriwal and his party’s political image, and the irony being in question that he was arrested for the very thing he and his government have so far advocated for a corruption-free administration[4]. People are divided between possessing two opinions, both equally credible. While some believe the shadow play of a political motive in defaming Kejriwal, others question Kejriwal’s credibility and competence as a leader and his lack of commitment towards his noble vision. The other political parties have also given a divided opinion between demanding Kejriwal’s resignation from the post of Chief Minister on one hand and a call for an investigation to be carried out by independent authorities instead of the ones affiliated with the Central Government. There has been extensive media coverage on this issue which helps us to get easy access to detailed analysis and day-to-day updates on the case thus shaping public opinion.
IMPACTS ON THE ECONOMIC FRONTLINES
It cannot be denied the serious impact this alleged scam has on the economic frontlines. Liquor sales are a significant contributor to the state’s treasury through taxes and duties imposed upon them. Such scams can result in loss instead of gain on the part of the government as the government loses out on income through taxes obtained through liquor sales and distribution. Reports of such scams can be detrimental to the country’s economic growth, as they would lose their confidence in the regulatory policies and credibility of domestic policies, and refuse to invest in any business ventures in the country. Political instability arising out of the scam affects the government’s ability to carry out effective administration, thus potentially leading to more economic loss. Apart from the investor’s perspective, such scams arising out of policies affect public trust in the government make consumers question the legitimacy or safety of liquor products and negatively affect related businesses and industries thus resulting in economic losses again.
CONCLUSION
In conclusion, the Delhi liquor scam serves as a stark reminder of the everlasting instances of corruption and administrative malpractice that have been plaguing our social and regulatory frameworks. It highlights the dire need for transparency that has to be achieved in governance so that in the event of such scams, public opinion is not biased completely towards only one side of the story. As responsible citizens of the country, we have a right and we should demand considerably greater integrity from the governmental authorities because it is only through a concrete and united public vice against such discrepancies on behalf of the administration can we truly hope to build a system that serves the interests of the people and caters to justice and equity. As the investigations proceed, with Arvind Kejriwal at the heart of this scandal, it is quite evident that this has resulted in sparking debates about the Delhi government’s integrity and has also raised concerns about the challenges encountered in pursuit of clean governance and the need for vigilance on the integrity of the public office. For citizens as the main stakeholders, the focus is now on fostering a system where the trust and confidence of the people in the public offices are reinforced.
Author(s) Name: Arno Dasgupta (Department of Law, Calcutta University)
Reference(s):
[1] Saikat Kumar Bose, ‘NDTV Explainer: All You Need To Know About Delhi Liquor Policy Case’(NDTV, 4 October 2023)<https://www.ndtv.com/delhi-news/delhi-liquor-policy-sanjay-singh-arvind-kejriwal-manish-sisodia-aap-cbi-delhi-liquor-policy-case-explained-allegations-investigations-arrests> accessed 26 June 2024
[2] Alka Jain, ‘CBI arrests Delhi CM Arvind Kejriwal in excise policy case’ ( Livemint, 26 June 2024) <https://www.livemint.com/news/india/cbi-arrests-delhi-cm-arvind-kejriwal-in-excise-policy-case> accessed 27 June 2024
[3] ‘Kejriwal only out on bail, remains main culprit in liquor ‘scam’: Delhi BJP’(Business Standard, 10 May 2024)<https://www.business-standard.com/elections/lok-sabha-election/kejriwal-only-out-on-bail-remains-main-culprit-in-liquor-scam-delhi-bjp> accessed 26 June 2024
[4] Ashutosh Sharma, ‘AAP faces existential crisis as liquor scam clouds its anti-corruption image’(Frontline The Hindu, 03 Feb 2024) <https://frontline.thehindu.com/politics/aam-aadmi-party-arvind-kejriwal-liquor-scam-bjp-allegations> accessed 26 June 2024
