A recent Comptroller and Auditor General (CAG) report highlighted significant issues in the Delhi government’s now-discontinued liquor policy. According to the report, the policy caused a loss of ₹2,026 crore to the public exchequer, marking the first official estimate of the alleged liquor scam’s financial impact.
The report also pointed out that certain bidders, despite facing financial losses, were still awarded licenses under the Arvind Kejriwal-led administration in Delhi.
CAG Report ₹2,026 Crore Loss in Delhi Liquor Policy Scam
A Comptroller and Auditor General (CAG) report has uncovered a revenue loss of ₹2,026 crore to the exchequer, citing alleged irregularities in the now-revoked liquor policy of the Delhi government. As per a leaked report accessed by India Today, it outlines critical lapses, liquor policy violations, and deviations in the licensing process.
The report further states that the policy failed to meet its objectives and alleges that AAP leaders benefited from kickbacks. Additionally, it points out that the Group of Ministers (GoM), headed by former Deputy Chief Minister Manish Sisodia, ignored recommendations made by the expert panel.
Also Read: Government Assures No Need for Concern Over HMPV After 3 Reported Cases
CAG Report Exposes Flaws in Liquor Policy Implementation
A recent report by the Comptroller and Auditor General (CAG) has revealed serious shortcomings in the execution of the liquor policy, resulting in a financial loss of around ₹2,026 crore to the government. According to the report, while the burden fell on the public, certain AAP leaders allegedly benefited through kickbacks.
The findings specifically pointed to Manish Sisodia, then head of the excise department, and his ministerial team for disregarding the recommendations of an expert panel. Additionally, it highlighted irregularities in granting liquor shop licenses, stating that violators were intentionally not penalized.
The CAG further noted that several crucial decisions were made arbitrarily, bypassing approval from both the Delhi cabinet and the Lieutenant Governor (LG).
Key Takeaways from the CAG Report
The following are the highlights of the CAG Report:
- Expert Panel Recommendations Overlooked: The group of ministers, led by Manish Sisodia, disregarded recommendations from expert panels.
- Bidding Process Issues: All entities were allowed to participate in the bidding process, even amidst complaints.
- Financial Evaluation Neglected: Authorities failed to flag the poor financial health of bidders before granting licenses.
- License Renewal Despite Losses: A license was renewed for an entity despite it reporting financial losses.
- License Issuance Violations: Multiple irregularities were found in the process of issuing licenses.
- No Penalties for Violators: Entities violating regulations were deliberately not penalized.
- Transparency Concerns: Pricing decisions lacked transparency.
- Missing Approvals: Key decisions were made without seeking approval from the Cabinet or the Lieutenant Governor (LG).
- Excise Rules Not Presented for Ratification: Excise rules were not submitted to the legislative assembly for approval, as required.
Analysis of Rs 2,026 Crore Loss to the Delhi Government
The Comptroller and Auditor General (CAG) report highlighted a Rs 2,026 crore loss to the Delhi government’s revenue. One significant factor was the surrender of licenses by some retailers before the policy’s expiry. Instead of re-tendering these licenses, the government left them unused, resulting in an estimated loss of Rs 890 crores.
Additionally, exemptions granted to zonal license holders contributed to a loss of Rs 941 crores. The report further pointed out that the Kejriwal-led government waived license fees worth Rs 144 crores during COVID-19 restrictions, despite the tender agreement explicitly excluding force majeure provisions.
Another issue was the incorrect collection of security deposits, which led to an additional loss of Rs 27 crores.
Also Read: CBI Charges Delhi CM Arvind Kejriwal in Liquor Policy Case
FAQs
Q.1. What caused the ₹2,026 crore loss in Delhi’s liquor policy?
Ans. The loss was caused by licensing irregularities, exemptions, waived fees, and failures in financial evaluations as highlighted in the CAG report.
Q.2. Who ignored expert panel recommendations in Delhi’s excise policy?
Ans. The Group of Ministers (GoM), led by Manish Sisodia, ignored expert panel recommendations while implementing the policy.
Q.3. What irregularities were found in the excise policy bidding process?
Ans. Bidders with financial difficulties were allowed to participate, and license renewals occurred despite reporting financial losses.
Q.4. Did the Kejriwal government waive any fees during the policy period?
Ans. Yes, the government waived ₹144 crore in license fees due to COVID-19 restrictions, despite terms excluding such provisions.
Q.5. What actions did the CAG report recommend to address these issues?
Ans. The CAG report suggested greater transparency, penalties for violators, and proper approvals for key policy decisions.
