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EquityWireCAG Report: Delhi lost INR 20 bln due to flawed liquor excise policy implementation
CAG Report

Delhi lost INR 20 bln due to flawed liquor excise policy implementation

This story was originally published at 18:07 IST on 25 February 2025
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Informist, Tuesday, Feb. 25, 2025

 

NEW DELHI – Departmental lapses and implementation issues by the erstwhile Delhi government in the now-scrapped Excise Policy for 2021-22 resulted in a financial loss of INR 20.03 billion, according to a report by the Comptroller and Auditor General tabled in the Delhi Assembly on Tuesday. The issues included ignoring the recommendations of the expert committee formed for suggesting changes to the policy, awarding of licences, and designing of the policy framework, as per the report.

 

"Excise Policy aimed to eradicate sale of spurious liquor and check bootlegging. However, important measures which were planned in the policy like setting up of liquor testing laboratories, batch testing for rigorous quality assurance, and monitoring and regulation through creation of a dedicated post were not ensured," according to the report. The policy, which was introduced in November 2021 and withdrawn in September 2022 amid allegations of corruption, has been a pain point for the previous Aam Aadmi Party government.

 

According to the report, out of the INR 20.03 billion, the state government lost INR 8.90 billion due to lack of retendering the surrendered retail licenses and INR 9.41 billion due to exemptions given to the zonal licensees.

 

After the CAG report was tabled, 21 AAP Members of the Legislative Assembly, including former Delhi minister Atishi, were suspended from the Assembly session for the day following a heated protest. The disruption began as soon as the Delhi Assembly session began, with Lieutenant Governor V.K. Saxena addressing the House. However, AAP legislators interrupted, raising slogans against the newly-formed Bharatiya Janata Party government.

 

In November 2021, the Delhi government had rolled out a new excise policy that promised several changes in the way alcoholic drinks were sold in the national capital. In April 2022, Delhi Chief Secretary Naresh Kumar noticed procedural lapses and irregularities in the policy. His report cited cartelisation and monopoly, and alleged illegal distribution of liquor licences to companies that violated the rules of the policy.

 

Former Delhi deputy chief minister Manish Sisodia was arrested two years back in connection to the case. Since then, AAP and its leaders – especially former chief minister and party convenor Arvind Kejriwal – faced considerable flak from Opposition on the issue. Political experts believe that the liquor policy was the key reason behind the change in government in the national capital.  End

 

Reported by Priyasmita Dutta

Edited by Ashish Shirke

 

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