A report from the Comptroller and Auditor General (CAG) has shown that the exchequer faced a revenue loss of Rs 2,026 crore because of supposed irregularities in executing the now-abandoned liquor policy of the Delhi government. The CAG report, obtained exclusively by India Today, reveals serious lapses, policy breaches, and violations in the licensing process.
It also stated that the policy did not reach its desired objectives and AAP leaders reportedly gained from bribes. The report also noted that the Group of Ministers (GoM), headed by then-Deputy Chief Minister Manish Sisodia, ignored the recommendations from the expert panel.
The liquor policy, launched in November 2021, sought to transform the liquor retail environment in the national capital and optimize revenue. Nonetheless, allegations of corruption and money laundering prompted inquiries by the ED and the CBI. Numerous senior AAP leaders, such as former Chief Minister Arvind Kejriwal, Sisodia, and Sanjay Singh, were apprehended. Nonetheless, they received bail in the previous year.
The CAG report, still pending presentation in the Delhi Assembly, disclosed that all entities were permitted to bid despite grievances, and the financial statuses of the bidders were not examined. It stated that even those entities that reported losses were granted or had their licenses renewed.
Furthermore, the CAG discovered that offenders were intentionally not punished. It also emphasized that important decisions concerning the policy were made without approval from the Cabinet or the Lieutenant Governor. Additionally, the new regulations were not presented to the Assembly for approval, in violation of the established procedure.
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ANALYSIS OF THE REVENUE LOSS
The CAG also highlighted flaws in the execution of the new policy. The report indicated that although some retailers kept their licences until the policy ended, others gave them up prior to the completion of the period. The government’s failure to re-tender the surrendered retail licenses resulted in a loss of Rs 890 crore.
Furthermore, the exemptions provided to zonal licensees resulted in an extra loss of Rs 941 crore. Moreover, Rs 144 crore was exempted in license fees for zonal license holders under the guise of Covid constraints. This is despite the fact that the tender document stated that commercial risks would rest entirely with the licensees.
The CAG report additionally highlighted that the infrastructure necessary for quality control, including labs and batch testing facilities, was never established, even though it was included in the policy plan.
