New Delhi: A recent Comptroller and Auditor General (CAG) report has raised serious concerns over the Delhi government’s 2021-22 excise policy, stating that it caused a financial loss of over Rs 2,000 crore. The report, presented in the Delhi Assembly, reviewed the Aam Aadmi Party (AAP)-led government’s excise policy, highlighting procedural violations, financial mismanagement, and disregard for expert recommendations.
The findings indicate that the then Deputy Chief Minister and Excise Minister, Manish Sisodia, ignored key recommendations from an expert panel while drafting the now-scrapped liquor policy. The report also exposes irregularities in licensing, revenue collection, and policy implementation, ultimately leading to a major financial setback for the Delhi government.
Key Findings of the CAG Report
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Revenue Loss and Licensing Irregularities
- The Delhi government lost Rs 941.53 crore due to delays in issuing permissions for liquor stores in non-conforming municipal wards (areas not legally designated for liquor sales).
- The Excise Department suffered an additional Rs 890.15 crore loss because of the surrender of liquor licenses and failure to re-tender liquor zones.
- A Rs 144 crore waiver was granted to liquor license holders citing COVID-19 restrictions, despite objections from the finance department. The decision was personally approved by Manish Sisodia.
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Violation of Delhi Master Plan 2021
- The Delhi Master Plan 2021 prohibited liquor vends in non-conforming areas, yet the excise policy mandated setting up at least two liquor vends per ward.
- The Delhi Development Authority (DDA) refused approval for liquor sales in these zones, leading to legal disputes. Liquor vendors approached the High Court, which later exempted them from paying Rs 114.50 crore per month in license fees, further deepening the financial loss.
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- Policy Lapses and Political Fallout
- 19 liquor license holders surrendered their licenses before the policy expired in August 2022, leading to further loss of revenue.
- No re-tendering was done, resulting in a complete loss of revenue from these zones.
- The Group of Ministers (GoM), led by Manish Sisodia, altered expert committee recommendations to favor private liquor wholesalers. The policy increased retail liquor outlets per bidder from 2 to 54, raising concerns over preferential treatment.
- Several major financial decisions were made without Cabinet or Lieutenant Governor approval, violating standard procedures.
CBI Probe and Political Repercussions
The Bharatiya Janata Party (BJP) has long accused the AAP government of corruption in the liquor policy. Following the CBI probe ordered by Lt. Governor VK Saxena in July 2022, several top AAP leaders, including Arvind Kejriwal, Manish Sisodia, and Sanjay Singh, were arrested and spent months in jail.
With these latest findings, the controversy surrounding Delhi’s liquor policy continues to escalate, putting the AAP government under intense scrutiny ahead of upcoming elections.
The revelations from the CAG report are expected to fuel further political debates and legal proceedings, as authorities investigate the financial mismanagement flagged in the report.
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