A shocking revenue loss of Rs 2,026 crore to the exchequer, because of alleged irregularities in the now-defunct liquor policy of the Delhi government, is what a report by the Comptroller and Auditor General has revealed. Huge gaps, deviations from policy, and licensing process violations have been underlined in the report, accessed exclusively by India Today.
The report cites that the liquor policy, aimed at overhauling the retail liquor sector in the national capital and increasing revenue, did not achieve its goals. It also alleges kickbacks to AAP leaders. The report states that the recommendations of an expert panel were ignored by the GoM headed by then-Deputy Chief Minister Manish Sisodia.
The policy, which was launched in November 2021, proved to be a controversial decision as corruption and money laundering were alleged, leading to investigations by the ED and the Central Bureau of Investigation. A few top-ranking AAP leaders, including the Chief Minister of Delhi Arvind Kejriwal and Sisodia, were arrested but were all bailed last year.
The CAG report, which is yet to be tabled in the Delhi Assembly, points out that despite numerous complaints, the bidding entities were allowed to proceed and their financial backgrounds were inadequately assessed. According to it, licenses were granted to those who showed losses, while in certain cases, even renewals were allowed without proper scrutiny.
Moreover, the report highlights that violators were not penalized, and key policy decisions were made without Cabinet approval or the Lieutenant Governor’s consent. New rules were also not submitted to the Assembly for ratification, violating official procedures.
The implementation of the policy itself was called into question, with the CAG noting that while some retailers retained their licenses until the policy’s expiration, others surrendered theirs prematurely. As these licenses were not re-tendered, the government suffered a loss of Rs 890 crore.
Exemptions extended to zonal licensees further caused a loss of Rs 941 crore apart from Rs 144 crore in license fees waived on the ground of COVID-19 restrictions despite the condition in tender documents that commercial risk shall lie exclusively with licensees. The CAG also condemned the infrastructure for quality control, including laboratories and batch testing facilities that should have formed part of the policy framework.
As the report gains traction, BJP leader and former Union Minister Anurag Thakur termed Arvind Kejriwal the “kingpin of liquorgate.” Thakur said, “AAP promised schools but built liquor stores instead. Their journey has been marked by scandals.”
The response to this came from AAP’s Rajya Sabha MP Sanjay Singh, who questioned if the report had been filed at the “BJP’s office.” He further clarified that the report has not been tabled in the Delhi Assembly so far: “Where is this CAG report? BJP leaders have lost their mental balance.”
