New Delhi: A new Comptroller and Auditor General (CAG) report has raised serious concerns over the Delhi government’s 2021-2022 Excise Policy, revealing a staggering ₹2,002 crore in losses attributed to weak policy framework and poor implementation. The findings, tabled in the Delhi
Assembly on Tuesday, have sparked a fierce political row between the Aam Aadmi Party (AAP) and the Bharatiya Janata Party (BJP).
The CAG report, which forms part of a series of audits of the AAP government’s performance, outlines several shortcomings in the excise policy, which was initially designed to curb the sale of spurious liquor and prevent bootlegging. However, the report highlighted that critical measures, including setting up liquor testing laboratories and ensuring quality assurance through batch testing, were never implemented.
According to the report, the policy’s implementation flaws led to revenue losses, with ₹941.53 crore lost due to delays in licensing processes and the opening of liquor vends in “non-conforming” areas, zones that do not meet land use norms for such establishments. Another ₹890.15 crore was lost because of improper handling of license fees and failed attempts to re-tender the liquor vends after their
surrender. The report also revealed a loss of ₹144 crore due to the waiver of license fees for businesses affected by the Covid-19 lockdown.
The findings have cast a shadow over the AAP government’s excise policy, which had faced allegations of corruption and mismanagement since its introduction. The policy was scrapped after it faced severe scrutiny and calls for investigation, with the BJP accusing AAP of misusing the system for its own gain. The BJP’s claims were further validated after Delhi’s Lieutenant Governor V.K. Saxena recommended a CBI probe in July 2022, resulting in the arrest of senior AAP leaders, including former Deputy Chief Minister Manish Sisodia.
Responding to the report, Delhi Chief Minister Rekha Gupta, who tabled the CAG findings, expressed shock that no such reports had been presented in the Assembly since 2017-18, accusing the previous AAP administration of failing to comply with constitutional requirements. “It is amazing to know that no CAG report was tabled in the Assembly after 2017-18. We had repeatedly requested the President and Speaker to make these reports public,” Gupta said.
BJP leaders, including Baijayant Jay Panda, seized the opportunity to attack the AAP, accusing the party of obstructing the truth. “AAP’s disruption of the House to prevent the CAG report from being presented is just a diversion. They can’t hide their corruption from the people of Delhi,” Panda asserted.
On the other hand, AAP leaders lashed out at the BJP, claiming that the report confirmed their long-standing accusations of corruption within the excise policy. Atishi, the Leader of Opposition, argued, “This report confirms that corruption was rampant. Over 28% of the liquor was sold illegally, and contractors lined their pockets while people connected to the BJP benefited.”
The political battle over the excise policy and the CAG report is far from over, as both parties continue to accuse each other of corruption and mismanagement. With the CAG’s findings now in the public domain, the spotlight is on the Delhi government’s handling of the excise policy and the wider implications for governance and accountability.