Kejriwal Govt's Liquor Policy Cost Delhi Rs 2,000 Crore: CAG Report

The report claimed that the recommendations of the Expert Committee were ignored.

The report was tabled by Chief Minister Rekha Gupta.

Source : X/LG VK Saxena

Delhi CAG Report: The Delhi government suffered cumulative losses of over Rs 2,000 crore due to the now-scrapped  2021-2022 excise policy, as per the 'Performance Audit on Regulation and Supply of Liquor in Delhi' report tabled by CM Rekha Gupta in the Delhi Assembly on Tuesday. As many as 15 MLAs, including former Chief Minister Atishi, were suspended from the House before the report was tabled.

The report has also flagged violations in the process of issuing licences. It has pointed out that recommendations of an expert panel, formed to suggest changes for the formation of the policy, were ignored by then deputy chief minister and excise minister Manish Sisodia.

The alleged irregularities in the formulation and implementation of the policy had snowballed into a political punching bag used by the BJP after Lt Governor V K Saxena recommended a CBI probe in July 2022. The report has highlighted several issues in the policy over which former CM Arvind Kejriwal and Sisodia were arrested.

Main Points Issued In CAG Report:

Infirmities in the formation of Excise Policy:
    * Recommendations of the Expert Committee were ignored.
    * Necessary permissions from the Cabinet/Lieutenant Governor were not obtained for exemptions/relaxations.

* Issue in Design and Award of Licenses:
    * Exclusivity arrangements between manufacturers and wholesalers and the formation of retail zones increased the risk of monopolisation and cartel formation.
    * Licenses were granted to a limited number of entities, leading to skewed distribution.

* Issues in the implementation of the Excise Policy:
    * Surrendered retail licenses were not retendered, leading to revenue loss.
    * The objective of equitable distribution was not achieved due to delays in working out modalities.
    * Waiver of license fees was granted to zonal licensees, resulting in revenue loss.
    * Incorrect collection of security deposits from zonal licensees led to revenue loss.
    * Important measures planned in the policy, like setting up liquor testing laboratories and batch testing, were not ensured.