The North News
New Delhi, February 25
The Delhi government suffered losses exceeding Rs 2,000 crore due to its now-withdrawn 2021-22 excise policy, a report by the Comptroller and Auditor General (CAG) has found. Delhi Chief Minister Rekha Gupta tabled the CAG report in the assembly on Tuesday, highlights policy weaknesses, poor implementation, and procedural lapses that contributed to the financial hit, according to the news outlet Money Control.
The audit flagged irregularities in the tendering process, noting that ineligible firms were allowed to participate. It also accused the previous Aam Aadmi Party (AAP) government of withholding files from scrutiny. According to the report, the recommendations of an expert panel—formed to advise on the policy’s framework—were disregarded by then deputy chief minister and excise minister Manish Sisodia, the news outlet said.
One of 14 performance audits of the previous government tabled by the new administration, the report also found violations in the licensing process. Among the key concerns was the opening of liquor stores in ‘non-conforming municipal wards’—areas where vends are not permitted under Delhi’s Master Plan 2021. The excise department incurred a loss of Rs 890 crore due to surrendered licenses and failure to re-tender these zones, India TV reported.
Additionally, revenue losses of Rs 144 crore were linked to waivers granted to licensees during the Covid-19 pandemic, while incorrect security deposit collection from zonal licensees further impacted earnings.
The excise policy had become a political flashpoint, with the Bharatiya Janata Party (BJP) attacking the AAP government after Lieutenant Governor VK Saxena called for a CBI probe in July 2022. The case led to the arrests of several senior AAP leaders, including Chief Minister Arvind Kejriwal’s key aides, Sisodia and Sanjay Singh, the news outlet further said.
The CAG report underscored that the excise policy’s framework mandated at least two retail liquor vends in each ward, despite existing zoning restrictions. The policy was eventually scrapped amid allegations of corruption and financial mismanagement.
