CAG report alleges Rs.2,026 crore revenue loss in Delhi’s liquor policy implementation

CAG report exposes Kejriwal’s ‘black deeds

A leaked report by the Comptroller and Auditor General (CAG) has revealed a revenue loss of Rs.2,026 crore to the exchequer due to alleged irregularities in the now-scrapped Delhi liquor policy. The report highlights major lapses, policy violations, and alleged benefits to Aam Aadmi Party (AAP) leaders from kickbacks.

Key findings of the CAG report

The CAG report criticized the implementation of the liquor policy introduced in November 2021, stating that it failed to achieve its intended goals of reforming the liquor retail sector and maximizing revenue.

Lapses and irregularities

• Licensing issues: Licenses were granted to entities reporting financial losses, and the financial conditions of bidders were not adequately scrutinized.
• Unaddressed complaints: Entities with complaints against them were allowed to bid without resolution.
• Losses from surrendered licenses: Retail licenses surrendered before the policy’s expiry were not re-tendered, causing a loss of Rs.890 crore.
• Zonal exemptions: Exemptions granted to zonal licensees resulted in an additional revenue loss of Rs.941 crore.
• Fee waivers: Rs.144 crore in license fees was waived on the pretext of COVID-19 restrictions, despite tender documents stating that commercial risks lay with the licensees.

Lack of approvals and violations

The report pointed out that key decisions were made without Cabinet approval or the Lieutenant Governor’s consent. Additionally, the policy’s rules were not tabled in the Delhi Assembly for ratification, violating procedural norms.

Neglected infrastructure

The policy’s plan to establish quality control infrastructure, including labs and batch testing facilities, was never implemented, further undermining its effectiveness.

AAP leaders implicated

The report linked the irregularities to the involvement of top AAP leaders, including then-Deputy Chief Minister Manish Sisodia, who led the Group of Ministers (GoM) overseeing the policy. Recommendations from the expert panel were reportedly ignored by the GoM. Investigations by the CBI and ED have led to the arrests of several AAP leaders, including Sisodia and Rajya Sabha MP Sanjay Singh, though they were later granted bail.

AAP responds, targets BJP

AAP’s Rajya Sabha MP Sanjay Singh dismissed the claims, questioning the authenticity of the report. Singh accused the BJP of fabricating the allegations for political gain.
“Where is this CAG report? Where are these claims coming from? Is it filed at the BJP office? The CAG report has not been tabled, and yet such baseless allegations are being made,” Singh said, targeting BJP leaders.

The CAG report, though not yet officially tabled in the Delhi Assembly, has ignited a political storm, with allegations of corruption and mismanagement in the implementation of Delhi’s liquor policy. As both parties trade accusations, the controversy underscores the need for greater transparency and accountability in public policy implementation.

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