The Delhi Government lost Rs 2,002 crore due to failures in the 2021-22 excise policy, now scrapped after corruption allegations, as highlighted by the CAG report pointing to significant lapses.
New Delhi: The Delhi Government incurred a massive loss of Rs 2,002 crore due to issues in formulating and implementing the now-scrapped excise policy for 2021-22, as per the Comptroller and Auditor General (CAG) report tabled in the Assembly on Tuesday.
The Delhi liquor policy was withdrawn by the then Aam Aadmi Party (AAP) government after allegations of corruption. Prominent AAP leaders, including former Chief Minister Arvind Kejriwal and Deputy CM Manish Sisodia, were arrested in the case lodged by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
The CAG report highlights that the Excise Policy for 2021-22 was framed to prevent monopolies in the liquor trade, ensure equitable liquor supply, and allow responsible players to operate transparently. It also aimed to eradicate the sale of spurious liquor and curb bootlegging. However, the report pointed out that significant lapses were ignored, leading to major revenue losses.
Key Findings of the CAG Report:
- Rs 890 crore revenue loss due to the failure to re-auction surrendered licenses.
- Rs 941 crore revenue loss due to the decision to open liquor vends in non-conforming areas without proper planning.
- Waiver of license fees worth Rs 144 crore granted to zonal licensees due to COVID restrictions, despite tender conditions specifying that commercial risks lay with the licensee.
- Incorrect collection of security deposits from zonal licensees, leading to a revenue loss of Rs 27 crore.
- Absence of liquor testing laboratories, lack of batch testing for quality assurance, and failure to create a dedicated regulatory post further contributed to inefficiencies.
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The report also criticized the policy’s skewed distribution pattern, allowing related business entities to hold multiple licenses, leading to exclusivity arrangements and brand pushing. Additionally, some retailers retained licenses till the policy expired, while others surrendered them early, causing disruptions in liquor supply.
The CAG concluded that the Delhi Excise Department failed to take timely action to rectify these issues, resulting in significant financial losses. This report adds to the ongoing controversy surrounding the liquor policy and raises further questions about accountability and governance in its implementation.
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