A leaked report by the Comptroller and Auditor General (CAG) has exposed serious irregularities in the Delhi government’s now-scrapped liquor policy, resulting in a revenue loss of ₹2,026 crore to the state exchequer.
The report, accessed by India Today, sheds light on significant lapses, policy violations, and deviations in the process of issuing licences under the controversial policy.
The liquor policy, introduced in November 2021, was designed to transform the retail liquor sector in Delhi and increase government revenue. However, the report indicates that the policy failed to meet its stated objectives.
Allegations of corruption, kickbacks to AAP leaders, and disregard for expert panel recommendations are among the key findings. It also notes that the Group of Ministers (GoM), headed by then-Deputy Chief Minister Manish Sisodia, overlooked the suggestions of the expert committee.
The CAG report highlights that critical decisions were taken without the approval of the Cabinet or the Lieutenant Governor. Furthermore, the new rules were never presented before the Assembly for ratification, raising questions about the transparency of the process.
The investigation found that licences were issued to entities despite complaints and without proper scrutiny of their financial conditions.
Some licences were even granted to entities that reported financial losses. Additionally, violations were deliberately ignored, and penalties were not imposed on those who breached the rules.
The policy faced widespread criticism and scrutiny, leading to probes by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). Several prominent AAP leaders, including then-Chief Minister Arvind Kejriwal, Manish Sisodia, and Sanjay Singh, faced arrest.
They were later granted bail. The report further reveals that the surrendered retail licences, which could have been re-tendered, were not put back into circulation. This alone resulted in a loss of ₹890 crore.
Exemptions given to zonal licensees contributed to an additional loss of ₹941 crore. Moreover, ₹144 crore was waived in licence fees for zonal licensees, citing Covid-related challenges, despite tender documents clearly stating that commercial risks would remain the responsibility of the licensees.
Infrastructure for quality control, such as labs and batch testing facilities, was also never developed, despite being a key part of the policy’s objectives.
As the report gained widespread attention, political reactions were swift. BJP leader and former Union Minister Anurag Thakur accused Delhi Chief Minister Arvind Kejriwal of masterminding what he referred to as “liquorgate.”
Thakur criticised AAP, saying the party had promised schools but instead delivered liquor stores, alleging a decade marked by scandals.
AAP, on the other hand, dismissed the allegations. Rajya Sabha MP Sanjay Singh questioned the authenticity of the report, suggesting it might have originated from the BJP’s office.
Singh emphasised that the report had not been officially tabled in the Delhi Assembly and accused BJP leaders of making baseless claims.
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