CAG Report on Delhi Liquor Policy: Rs 2,026 Crore Loss to Government, Licence Rules Ignored

A Comptroller and Auditor General (CAG) report on the Delhi government’s now-cancelled liquor policy has revealed several flaws and claims a loss of Rs 2,026 crore to the public treasury. The report is part of the investigation into the alleged liquor scam and highlights several issues with the policy’s implementation.

The CAG pointed out that some businesses, despite reporting financial losses, were still awarded liquor licenses under the Arvind Kejriwal-led government. The report also criticized the AAP government for ignoring the recommendations of an expert panel and for allowing violations in the licensing process without imposing penalties. It claimed that key decisions were made without proper approval from the Delhi Cabinet or the Lieutenant Governor.

Key findings from the CAG report include:

• Expert panel recommendations were disregarded by the ministers, including Manish Sisodia.
• Liquor licenses were issued to companies despite complaints about their financial health.
• One business, which was running at a loss, still had its license renewed.
• Licenses were issued in violation of rules, with no penalties for offenders.
• There was a lack of transparency in pricing and key decisions were made without cabinet or LG approval.
• Excise rules were never presented to the legislative assembly for ratification.

Regarding the Rs 2,026 crore loss to the government, the CAG detailed the following breakdown:

• Rs 890 crore loss due to retailers surrendering their licenses, which were not re-tendered.
• Rs 941 crore loss caused by exemptions given to zonal licensees.
• Rs 144 crore revenue loss due to waived license fees under the guise of COVID-19 restrictions.
• Rs 27 crore loss due to improper collection of security deposits.

In response to the CAG report, BJP leader and Union Minister JP Nadda criticized Delhi Chief Minister Arvind Kejriwal and his party, calling the report an expose of their alleged mismanagement. He accused the AAP government of being “intoxicated by power” and using the liquor policy for corruption.