CAG report flags Rs 2,000 crore revenue loss in Delhi liquor policy

The Delhi government suffered cumulative losses of over Rs 2,000 crore due to the 2021-2022 excise policy for reasons ranging from weak policy framework to deficient implementation, according to a CAG report tabled in the assembly on Tuesday. The report, one of 14 on the previous Aam Aadmi Party government’s performance to be tabled by the new Rekha Gupta-led dispensation, has also flagged violations in the process of issuing licences. It has pointed out that recommendations of an expert panel, formed to suggest changes for the formation of the now scrapped policy, were ignored by then deputy chief minister and excise minister Manish Sisodia.
The report on the alleged liquor scam, a hot button issue in the run-up to the elections, claimed a loss of revenue to the tune of Rs 941.53 crore, saying timely permissions were not taken for opening the liquor vends in “non-conforming municipal wards”.
The report added that the Department was issuing licenses without checking various requirements relating to Excise Rules and Terms and Conditions for the issue of different types of licenses. Over two hundred pages report point out poor execution of Enforcement functions ranging from incorrect inspection reports to deficient show cause notices and incorrect collection of security deposits from zonal Licensees and other lacuna in the liquor policy .
The report also talks about the lack of transparency in the pricing of Indian Made Foreign Liquor. The Central Auditor highlighted inadequate Quality Control of liquor during the previous regime and stressed the need for proactive monitoring of the quality of alcohol and framing of stringent quality standards. Talking about the issues in the implementation of the Excise Policy, the report said while some retailers retained licenses till the expiry of the policy period, some surrendered the same before the policy period was over which disrupted supply leading to revenue loss of around nine hundred crore rupees.
Speaker Vijender Gupta said that the CAG reports had not been tabled in the House since 2017-18. He added that the previous government violated the provisions related to CAG reports in the Constitution. Commenting on the report in the House, BJP MLA Arvinder Singh Lovely accused the previous AAP government of undermining democratic values.
Earlier, Lieutenant Governor (LG) VK Saxena in his address to the Delhi Assembly on the second day of the first session of the 8th Legislative Assembly said that the Prime Minister Narendra Modi's mantra of 'sabka saath, sabka vikas, sabka vishwas, sabka prayas, sabka samman' would be the guiding factor for the state government. Further, he said that the government would pay special focus to areas including corruption, women empowerment, welfare of poor and world class roads.
Speaking at the session, the LG said "PM Narendra Modi's mantra of 'sabka sath, sabka vikas, sabka vishwas, sabka prayas, sabka samman' will be the guiding factor of my government... My government will stand up to the people's rising needs and expectations. My government will pay special focus on these 10 areas- corruption-free. administration, women empowerment, the welfare of the poor, improvement in health services, good education model, world-class roads, clean and pollution-free Delhi, clean Yamuna, clean water, and regularisation of unauthorised colonies."