The Delhi government suffered a massive loss of ₹2,002 crore due to flaws in the formulation and execution of the now-scrapped 2021-22 excise policy, according to a Comptroller and Auditor General (CAG) report tabled in the Assembly on Tuesday.
The policy, introduced by the Aam Aadmi Party (AAP) government, was withdrawn following allegations of corruption. The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) later arrested AAP leaders, including then Chief Minister Arvind Kejriwal and Deputy CM Manish Sisodia, in connection with the case.
The report highlighted that the policy aimed to prevent monopolies, ensure fair liquor distribution, and curb bootlegging but suffered from major shortcomings. It pointed out that related business entities held licenses across the supply chain, raising concerns about exclusivity arrangements and brand pushing. Additionally, some retailers surrendered their licenses early, disrupting supply chains since the policy lacked provisions requiring advance notice before license surrender.
Key financial losses outlined in the report include:
•₹890 crore loss due to surrendered licenses not being re-tendered.
•₹941 crore loss from failure to open vends in non-confirming areas, forcing revenue exemptions.
•₹144 crore loss from license fee waivers during COVID restrictions, despite commercial risks being contractually assigned to licensees.
•₹27 crore revenue loss due to incorrect security deposit collection from zonal licensees.
The report also criticized the absence of liquor testing labs, batch testing for quality control, and a dedicated regulatory post for policy enforcement.
