A report by the Comptroller and Auditor General (CAG) has highlighted significant lapses in the now-scrapped excise policy of the Delhi government, estimating a staggering loss of Rs 2,026 crore to the exchequer. This figure, revealed for the first time, outlines the financial impact of what has been described as a "liquor scam."
Key Findings of the CAG Report
The CAG report pointed to irregularities in the policy’s implementation, alleging deliberate actions that favored certain players while ignoring established procedures. Key findings include:
- Recommendations from an expert panel were disregarded by the group of ministers led by then-Excise Minister Manish Sisodia.
- Licenses were granted to entities despite complaints and questionable financial health. One license was even renewed for an entity operating at a loss.
- Violations in the issuance of liquor licenses were not penalized, allegedly deliberately.
- Several key decisions were made without the approval of the Delhi Cabinet or the Lieutenant Governor (LG).
- A lack of transparency in pricing and policy decisions was noted.
- Excise rules were not presented before the legislative assembly for ratification.
Breakdown of Rs 2,026 Crore Loss
The CAG report detailed how the Delhi government suffered significant revenue losses due to:
- Untendered Licenses: Retailers surrendered licenses before the policy’s expiry, and the government did not re-tender them, resulting in a loss of Rs 890 crore
- Exemptions for Zonal Licensees: These exemptions caused a revenue loss of Rs 941 crore.
- License Fee Waivers: The government waived Rs 144 crore in license fees due to COVID-19 restrictions, despite the tender agreement’s clear terms prohibiting such force majeure claims.
- Incorrect Security Deposits: Errors in the collection of security deposits cost the exchequer Rs 27 crore.
Allegations of Favoritism and Kickbacks
The report claimed that the Aam Aadmi Party (AAP) leadership, including Manish Sisodia, ignored expert advice and facilitated actions that benefited certain license holders. It alleged that while the common people bore the brunt of the lapses, political leaders received kickbacks.
Impact of the Policy
The findings of the CAG report cast a shadow over the Kejriwal government’s handling of the excise policy. The report underscores the need for transparency, adherence to established protocols, and stricter oversight to prevent such financial and procedural irregularities in the future.
The revelations are likely to intensify scrutiny of the AAP administration and may have far-reaching political and legal consequences.
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