New Delhi: In a significant development, the Comptroller and Auditor General (CAG) has released a report scrutinizing Delhi’s now-scrapped 2021-22 excise policy. The report, titled “Performance Audit on Regulation and Supply of Liquor in Delhi,” was tabled in the Delhi Assembly on February 25, 2025. It highlights substantial revenue losses and procedural lapses during the policy’s formulation and implementation.
CAG Report Highlights Revenue Losses Due to Delhi Liquor Policy
The CAG report reveals that the Delhi government incurred a revenue loss of approximately ₹2,002 crore under the 2021-22 excise policy. This loss is attributed to decisions favoring private wholesalers and retailers, leading to a monopolistic control over the liquor trade in the capital. The report points out that the Group of Ministers (GoM), led by the then Deputy Chief Minister and Excise Minister, deviated from the expert panel’s recommendations. Instead of maintaining government control, the GoM allowed private entities to manage wholesale liquor operations, resulting in significant financial setbacks for the state.
Procedural Lapses and Preferential Treatment in Delhi Liquor Policy
The audit identifies several procedural lapses in the policy’s implementation. Notably, it highlights violations of the Delhi Excise Rules, 2010, which prohibit entities from holding multiple licenses across categories. The report uncovers instances where wholesalers posed as retailers, leading to conflicts of interest and undermining the policy’s integrity. Such preferential licensing practices not only contravened established regulations but also facilitated the creation of monopolies, adversely affecting fair market competition.
Political Repercussions Following the CAG Report on Delhi Liquor Policy
The release of the CAG report has intensified political debates in Delhi. The ruling Bharatiya Janata Party (BJP) has seized upon the findings to criticize the previous Aam Aadmi Party (AAP) administration. Delhi Chief Minister Rekha Gupta emphasized the BJP’s commitment to eradicating corruption, stating that the report exposes the financial irregularities of the former government. Conversely, AAP leaders argue that the report corroborates their earlier claims regarding losses under the old excise policy, suggesting that the findings justify their decision to scrap it.
Implications of the CAG Report on Future Excise Policies
The CAG’s findings underscore the necessity for transparency and adherence to established procedures in policy formulation. The report recommends a thorough review of the excise policy framework to prevent monopolistic practices and ensure equitable revenue generation. It also calls for stricter enforcement of licensing regulations to maintain the integrity of the liquor trade in Delhi. As the political discourse continues, the report serves as a critical reference point for future policy decisions, aiming to balance revenue interests with regulatory compliance.
