A report by the Comptroller and Auditor General of India (CAG), tabled in the Delhi Assembly on Tuesday, has revealed that the now-scrapped Delhi excise policy for 2021-22 resulted in a financial loss of ₹2,002.68 crore to the state government.
The policy, which was introduced in November 2021 and withdrawn in September 2022 amid corruption allegations, has been a significant point of controversy for the Aam Aadmi Party (AAP) government.
The CAG report outlined multiple policy missteps and financial irregularities, attributing a substantial portion of the losses—₹941.53 crore—to the failure to open liquor vends in non-conforming areas. These are zones that do not meet land use regulations for setting up such establishments.
AAP leaders jailed over liquor policy scandal
The excise policy was a major political setback for the previous AAP government, leading to the imprisonment of key leaders, including then-Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia.
The corruption allegations surrounding the policy are also believed to have played a crucial role in AAP’s defeat in the recent Delhi Assembly elections, allowing the Bharatiya Janata Party (BJP) to return to power in the national capital after 26 years.
The Delhi Assembly proceedings saw significant uproar over the report, culminating in the suspension of 15 AAP MLAs.
Lack of scrutiny by excise department
According to the report, the 2021-22 excise policy was introduced with the stated objectives of streamlining liquor trade, preventing monopolies, and enhancing consumer experience. However, the CAG findings indicate that these objectives were not met.
The report also highlighted critical lapses by the Delhi Excise Department, which failed to adequately assess the financial capability, management experience, and operational sustainability of vendors before issuing licenses.
BJP vows to eliminate corruption
Reacting to the report, BJP leader Baijayant Jay Panda reaffirmed his party’s commitment to tackling corruption in Delhi. "The BJP has fulfilled its constitutional duty by presenting the CAG report. You saw the chaotic scenes in the Assembly where AAP MLAs attempted to disrupt proceedings to prevent the report from being tabled," he said.
He further added, "By delaying or obstructing the CAG report, they cannot conceal from the people of Delhi the large-scale corruption that has been exposed."
Policy framework and licensing violations
The CAG report also pointed to procedural lapses in the formulation of the excise policy, particularly highlighting that recommendations made by an expert panel were disregarded.
The panel, which was set up to propose improvements in the new liquor policy, had provided key suggestions that were ignored by then-Deputy Chief Minister and Excise Minister Manish Sisodia, according to a report by PTI.
The findings of the report are likely to further intensify political tensions in Delhi, as the BJP government seeks to take decisive action based on the revelations.
Also Read: Atishi, 11 AAP MLAs suspended over CAG report uproar
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