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CAG report reveals Rs 2,026 crore loss in Delhi excise policy scam

The leaked report states that the policy failed to meet its objectives and claims AAP leaders benefitted from alleged kickbacks

Reported by:  PTC News Desk  Edited by:  Jasleen Kaur -- January 11th 2025 02:21 PM
CAG report reveals Rs 2,026 crore loss in Delhi excise policy scam

CAG report reveals Rs 2,026 crore loss in Delhi excise policy scam

PTC Web Desk: A report by the Comptroller and Auditor General (CAG), exclusively accessed by India Today, has revealed a revenue loss of Rs 2,026 crore to the exchequer due to alleged irregularities in the now-scrapped liquor policy of the Delhi government. The report highlighted several lapses, policy deviations, and procedural violations during the policy's implementation, raising questions about its effectiveness and transparency.

The Delhi liquor policy, introduced in November 2021, aimed to overhaul Delhi's liquor retail landscape and maximise government revenue. However, it became embroiled in allegations of corruption and money laundering, leading to investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). Prominent Aam Aadmi Party (AAP) leaders, including former Chief Minister Arvind Kejriwal, then-Deputy Chief Minister Manish Sisodia, and Rajya Sabha MP Sanjay Singh, faced arrests but were granted bail last year.


The leaked report states that the policy failed to meet its objectives and claims AAP leaders benefitted from alleged kickbacks. Recommendations made by an expert panel were reportedly disregarded by the Group of Ministers (GoM) headed by Sisodia. The CAG also pointed out that key decisions related to the policy were made without obtaining Cabinet approval or the Lieutenant Governor’s consent, a clear violation of protocol. Furthermore, the new rules were not presented before the Delhi Assembly for ratification.

The report flagged issues in the licensing process, stating that financially weak entities were allowed to bid, and even those reporting losses were granted or had their licenses renewed. The government also failed to re-tender surrendered retail licenses, leading to a loss of Rs 890 crore. Additionally, zonal licensees were given exemptions that caused another Rs 941 crore loss. The policy even waived Rs 144 crore in license fees under the guise of Covid-19 restrictions, despite tender documents stating that commercial risks were to be borne by the licensees.

Another major lapse highlighted by the CAG was the lack of infrastructure for quality control. Despite being part of the policy framework, essential facilities such as testing labs and batch verification mechanisms were never established.

Meanwhile, AAP Rajya Sabha MP Sanjay Singh dismissed the allegations, questioning the legitimacy of the report. "Where is this CAG report? Was it filed in the BJP office? BJP leaders have lost their mental balance. The report hasn’t even been tabled in the Delhi Assembly," he said, accusing the BJP of creating baseless narratives.

The CAG report has yet to be officially presented in the Delhi Assembly, but its findings are already sparking intense political debates. With allegations of corruption, procedural violations, and significant revenue losses, the controversy surrounding the Delhi liquor policy adds a new chapter to the ongoing tussle between AAP and BJP.

- With inputs from agencies

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