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Disallowed in Delhi, same excise policy doing wonders in Punjab: Arvind Kejriwal

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The Excise Policy 2021-22 that the Aam Aadmi Party government was not allowed to implement in Delhi has worked wonders in Punjab, Delhi Chief Minister and party supremo Arvind Kejriwal on Thursday said. The remarks from Kejriwal have come at a time when several opposition leaders in Punjab have alleged alleging that Bhagwant Mann-led government was planning to change the excise policy, even as the ruling AAP has hinted that it won’t be taking any such step as changing the policy in the national capital “sent a wrong message across.”

The AAP government in Delhi was forced to withdraw the policy in July after LG VK Saxena recommended to the CBI a probe alleging irregularities in its implementation. The Kejriwal government had not given any immediate reason for withdrawing the policy.

“The same excise policy, which they did not allow us to implement in Delhi, is doing wonders in Punjab. Congrats Bhagwant! Congrats Harpal!,” the Delhi Chief Minister said in a tweet, after Punjab Excise Minister Harpal Singh Cheema said that the state’s excise collection crossed Rs 4,000 crore-mark within the initial six months of a financial year for the first time.

Earlier, after Enforcement Directorate (ED) raids on several excise officials in Punjab, it was suggested that the L-1 licenses, given to liquor suppliers, should be withdrawn and the government should rather set up its own corporation to supply liquor to the retail shops.

However, sources in the know of things said, the government was not in a mood to tweak the excise policy at any cost.

“After the ED raids, a few officials suggested to the government that it should set up its own corporation rather than having private players and face allegations. Two L-1 license holders in Punjab are being investigated by ED for being prominent players in Delhi’s now scrapped excise policy,” a source privy to the discussions said.

The source added that after ED raids in connection with Delhi’s earlier excise policy, panic gripped the officials.

“They suggested that to steer clear of any such controversy, the Punjab government should withdraw the L-1 licenses. However, the government believes that after Delhi scrapped its excise policy, a message was sent out that there was something wrong with it and that AAP government in national capital had tried to correct things in a knee-jerk reaction. They do not want to send across any such message now,” the source added.

BJP had later accused the government of planning to change the excise police. Party leader Manjinder Singh Sirsa said, “ Punjab government officials have written to Excise Minister demanding scrapping of the new Excise Policy, which is prima facie a tool and support for corruption. This proves my allegations correct that Kejriwal and (Delhi Deputy CM) Sisodia wanted to implement Delhi Model of Liquor scam in Punjab.”

Sirsa had accused “Kejriwal and Sisodia” of wanting “to pocket huge gains through Punjab excise policy, just like they did in Delhi”. The BJP leader said he hoped that “this action of government officials will open the eyes of CM
Mann who is refusing to acknowledge how his Delhi boss is looting Punjab”.

Also, the Centre has written to the state to increase the production of ethanol so for boosting production of Ethanol Blended Petrol (EBP). As per the excise policy, the liquor manufacturers are allowed to produce only 40 per cent ethanol. The Centre wants the percentage raised as it looks to reduce dependence on petroleum for fuel.

However, sources said the state is not willing to to do this.

Earlier, announcing withdrawal of the policy, Sisodia had attacked BJP saying the party had come with allegations of corruption because a part of the Rs 3,500 crore theft by the liquor mafia was pocketed by its leaders under the old excise policy. A Cabinet note of Delhi government had cited loss of excise revenue despite high sale of liquor, exit of licensees from the business, discounts leading to “unhealthy market practices,” and shortage of premium brands, as the key reasons for withdrawal of the policy implemented on November 17, 2021.

The CBI has registered an FIR in the alleged irregularities in Excise policy 2021-22 naming Sisodia, who is also in-charge of Excise department, as one of the accused.

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