The liquor policy non-scam
By: Keerthana Satheesh
SY BSc 22-25
Imagine you’re back in school and you did nothing but your classmates complained that you stole their eraser. Your teacher comes in and puts you in detention and tells you can only go free when you prove you didn’t steal the eraser. Now you might open up your pockets and show that you have no eraser at all. But if the teacher is adamant on convicting you, she can just say that you stole the eraser and hid it elsewhere. In this scenario, you might end up spending your whole life proving that the eraser does not exist in your possession.
On March 21, 2024, for the first time in the history of independent India, a sitting Chief Minister was arrested. The Enforcement Directorate charged him as the key conspirator and kingpin in the Delhi liquor policy scam. To cut the story short, ED found no evidence or money trail against Kejriwal. “How is he still in jail?” you might ask. Well in 2018, an amendment was made to the Prevention of Money Laundering Act which made jail, not bail the rule. This means that Kejriwal will remain in jail until he can “prove his innocence”.
I’ll still explain this liquor policy of Delhi that jailed prominent AAP leaders like Sanjay Singh, Manish Sisodia, and even Arvind Kejriwal. To understand this policy we must first understand why state governments seem to be so into alcohol so much. There are two ways a government can make money. Either through transfers from the centre or through their own revenue. There are several ways a state government can increase their revenue. But the quickest way is to increase taxes on alcohol.
State governments exploit the fact that alcohol has inelastic demand. It is unlike petrol or diesel in the sense that increasing prices for it will not affect your vote share in elections. To boost revenue from alcohol, the AAP government wanted to transform a Delhiites “experience” buying liquor. Kejriwal aimed to transform the liquor buying experience in hopes of increasing revenue. Before, these shops would be crowded and shady, creating unsafe spaces for women. Through the new policy, the Delhi government wanted to change the look of these spaces from thekas to a premium experience with A/c and other regulations. The way they were going to do this was to provide vendor licences to private vendors who want to sell alcohol and auction the licences to the highest bidder.
With this, they aimed to curb brand pushing which was a result of manufacturer to seller having a setting. There was also illegal smuggling and competition from nearby states that affected the sales of liquor in Delhi.
They increased the numbers from 630 to 840 shops. Shops built through these new policies had to follow regulations such as good lighting, air conditioning, etc. Aside from building these shops, the Delhi government also reduced the age limit from 25 to 21, reduced the number of dry days and allowed shops to be open till 3am in the night. To avoid cartelisation, the policy included rules that said that no company can fight in two zones or manage both the manufacturing and retail of liquor.
From the implementation of the policy, several issues were raised against it3. Some of the chief complaints that AAP came under fire for was that the policy by default favours big players. Small players cannot fairly fight and win the licence auction. The AAP government claimed that this was by design, to ensure a premium experience that these big players will be able to bring to the table. Since the policies were so different in Delhi, a price war began in Gurugram, which comes under the state of Haryana. This led to so many retailers even giving up their licence. Finally the new policy was withdrawn on 31st July 2022.
Amidst all this, the main charge that AAP leaders are in jail for is that AAP took 100 crores from many companies called the South group and in return gave them advantages in excise policy. This 100 crore was then allegedly used to fund their campaigns in Goa. All the evidence in this case is from the statement of people only. These statements are shaky as people seem to miraculously change their word after being put in jail for a while. More importantly, no money trail has been established and proven yet.
Corruption and money laundering are serious issues. But what is so exceptional about these crimes that getting a bail has been made so difficult. A law that makes the right to bail difficult, is akin to a weapon in a democracy. It is a set up for the failure of institutions and justice. Why should anybody be in jail without a conviction, let alone an elected representative?
If this article felt incomplete, it was intentional. Consider it a mini exercise in our civic duty. Head to the internet and verify everything the information presented here. Read primary news sources and come to your own conclusions. Once you have, hold your representatives accountable. Democracy doesn’t function just by voting once every five years. It demands daily engagement and expression. The system of freedom and democracy our ancestors fought to keep in place thumps its chest in pride every moment someone steps forward and challenges it freely, without fear.