Delhi Liquor Policy Scam: CAG report exposes Rs 2,026 Cr revenue loss

New Delhi, Jan 11: A report by the Comptroller and Auditor General (CAG) has revealed a revenue loss of Rs 2,026 crore to the government due to alleged irregularities in the now-scrapped liquor policy of the Delhi government. The report highlights several lapses, policy deviations, and procedural violations during the policy’s implementation, raising serious concerns about its effectiveness and transparency.

The Delhi liquor policy, launched in November 2021, aimed to overhaul the liquor retail sector in the capital and maximize government revenue. However, the policy became embroiled in allegations of corruption and money laundering, triggering investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). Several Aam Aadmi Party (AAP) leaders, including former Chief Minister Arvind Kejriwal, ex-Deputy Chief Minister Manish Sisodia, and Rajya Sabha MP Sanjay Singh, were arrested in connection with the case but were granted bail last year.

The CAG report claims that the policy failed to achieve its intended objectives and alleges that AAP leaders benefitted from kickbacks. It also reveals that recommendations made by an expert panel were ignored by the Group of Ministers (GoM) headed by Sisodia. Additionally, key decisions related to the policy were made without Cabinet approval or the Lieutenant Governor’s consent, violating established protocols. The policy changes were also not presented before the Delhi Assembly for ratification.

The report flags multiple issues in the licensing process, including the granting of licenses to financially weak entities and the renewal of licenses for loss-making businesses. Furthermore, the government did not re-tender surrendered retail licenses, leading to a revenue loss of Rs 890 crore. Zonal licensees were granted exemptions that caused an additional Rs 941 crore loss. The policy also waived Rs 144 crore in license fees, citing Covid-19 restrictions, despite tender documents clearly stating that commercial risks should be borne by the licensees.

Another major issue highlighted in the CAG report is the lack of infrastructure for quality control. Although such facilities were part of the policy framework, essential infrastructure like testing labs and batch verification mechanisms were never established.

In response to the report, AAP Rajya Sabha MP Sanjay Singh dismissed the allegations, questioning the authenticity of the CAG 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,” Singh said, accusing the BJP of fabricating baseless narratives.

The findings of the CAG report have yet to be officially presented in the Delhi Assembly, but they have already ignited intense political debate. With accusations of corruption, procedural violations, and significant financial losses, the controversy surrounding the Delhi liquor policy continues to deepen the ongoing political clash between AAP and BJP.