According to the CAG audit, Delhi lost Rs 2,026 crore as a result of its abandoned liquor policy


A leaked report by the Comptroller and Auditor General (CAG), accessed by India Today, has brought to light alleged irregularities in the now-scrapped liquor policy of the Delhi government. The report highlights significant procedural lapses, deviations from norms, and questionable decisions that led to a reported revenue loss of ₹2,026 crore to the exchequer. This revelation has reignited controversy surrounding the liquor policy, which was introduced in November 2021 with the stated aim of overhauling Delhi’s liquor retail system and maximizing government revenue. However, the report suggests that the policy not only failed to meet its objectives but also allegedly facilitated corruption and misuse of power.

The CAG report points to systemic failures in the implementation of the policy, which allowed all entities to bid for licenses despite receiving complaints about certain applicants. Financial conditions of the bidders were not properly scrutinized, and licenses were reportedly granted to entities reporting losses or renewed without adequate justification. In some instances, retailers surrendered their licenses before the expiry of the policy period, yet the government did not re-tender these licenses, resulting in a revenue loss of ₹890 crore. Additionally, exemptions granted to zonal licensees led to further losses amounting to ₹941 crore. The government also waived ₹144 crore in license fees for zonal licensees, citing COVID-19 restrictions, despite the tender documents explicitly stating that commercial risks were to be borne solely by the licensees.

The report also highlights that infrastructure for quality control, such as laboratories and batch-testing facilities, which were integral to the policy’s implementation, was never set up. Furthermore, critical decisions related to the policy were allegedly made without the approval of the Cabinet or the Lieutenant Governor, and the new rules were not tabled before the Assembly for ratification, as required by procedure. Violators of the policy were reportedly not penalized, raising questions about enforcement and accountability.

Investigations into the policy by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) have already led to arrests of high-profile AAP leaders, including former Deputy Chief Minister Manish Sisodia and Rajya Sabha MP Sanjay Singh. Chief Minister Arvind Kejriwal was also questioned about the case. While these leaders were later granted bail, the controversy has continued to overshadow the Delhi government.

The AAP has strongly denied the allegations, accusing the BJP of orchestrating a smear campaign. Rajya Sabha MP Sanjay Singh questioned the authenticity of the leaked report, suggesting that it might have originated from the BJP’s office. He criticized the BJP for making claims about a report that has not yet been officially tabled in the Delhi Assembly. Singh remarked, “Where is this CAG report? Is it filed at the BJP office? BJP leaders have lost their mental balance. The CAG report has not been tabled, and they are making such claims.”

This political row has further strained relations between the BJP and AAP, with both sides exchanging sharp barbs. The BJP has seized on the leaked report as evidence of corruption within the Delhi government, while the AAP has dismissed the allegations as baseless and politically motivated. The controversy has sparked a broader debate about governance, transparency, and accountability in the implementation of public policies, adding another layer of complexity to the ongoing legal and political battles surrounding the liquor policy. The Delhi government now faces increased scrutiny as it seeks to rebuild public trust and address the questions raised by the CAG report.


 

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