AAP’s Delhi liquor policy caused ₹2,002 crore loss.
The Comptroller and Auditor General (CAG) of India’s report on the now-scrapped Delhi liquor policy scam was presented in the Assembly today by Chief Minister Rekha Gupta. The report highlights significant financial irregularities and alleges a revenue loss of ₹2,002 crore due to the policy. The AAP-led government’s excise policy had been under scrutiny for months, leading to its eventual rollback. The findings are expected to intensify political debates and legal actions against those involved in the alleged scam.
CAG Report Reveals ₹2,002 Crore Revenue Loss in Delhi Liquor Policy
A report by the Comptroller and Auditor General of India (CAG) has revealed that the implementation of the now-scrapped Delhi liquor policy by the former Aam Aadmi Party (AAP)-led government resulted in an overall revenue loss of ₹2,002 crore. The report, which was tabled in the Delhi Assembly today by Chief Minister Rekha Gupta, has reignited the political firestorm surrounding the excise policy. The proceedings in the Assembly turned chaotic as AAP MLAs vehemently opposed the report’s presentation, leading to their suspension.
A Policy Under Scrutiny
The Delhi liquor policy was introduced in 2021 with the aim of reforming the city’s alcohol trade, increasing revenue, and eliminating the liquor mafia. However, the policy quickly came under scrutiny over allegations of corruption, financial irregularities, and preferential treatment to certain liquor vendors. The policy was eventually rolled back in 2022 following intense criticism and an investigation by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
The CAG report has now provided a detailed financial assessment of the policy’s impact, highlighting severe revenue losses and procedural lapses. According to the report, the policy led to an estimated revenue shortfall of ₹2,002 crore, raising serious questions about its implementation and financial planning.
Key Findings of the CAG Report
The CAG’s audit has pointed to several irregularities in the liquor policy’s implementation, including:
- Revenue Losses Due to License Fee Waivers: The report states that the government provided undue relaxations and waivers to private liquor vendors, resulting in a significant loss to the exchequer. The excise department allegedly failed to collect the expected license fees from vendors, which contributed heavily to the revenue deficit.
- Questionable Tendering and Licensing Process: The report highlights irregularities in the allocation of liquor licenses, where certain vendors were favored, and licensing norms were allegedly relaxed. This led to an unfair market advantage and financial setbacks for the government.
- Reduction in Government Control Over Liquor Sales: The policy shifted the liquor business entirely into private hands, removing government-operated liquor stores. This resulted in decreased revenue from liquor sales, as private vendors reportedly manipulated prices and distribution.
- Unjustified Discounts and Price Reductions: The report flagged the introduction of heavy discounts and promotions by private vendors, which not only disrupted revenue collection but also encouraged excessive alcohol consumption.
Political Fallout and Assembly Chaos
As soon as Chief Minister Rekha Gupta tabled the report in the Delhi Assembly, AAP MLAs strongly opposed its presentation, arguing that the report was politically motivated and an attempt to target their party. This led to a heated exchange between AAP leaders and members of the ruling party, culminating in the suspension of the protesting MLAs.
AAP, which had earlier dismissed allegations of wrongdoing in the liquor policy, continues to maintain that the policy was designed to improve the system and increase government revenue. However, the findings of the CAG report have strengthened the opposition’s claims that the policy was riddled with corruption and mismanagement.
Reactions from Political Parties
The Bharatiya Janata Party (BJP), which has been critical of AAP’s excise policy since its inception, seized the opportunity to attack the former Delhi government. BJP leaders demanded strict action against those responsible for the losses and called for an independent inquiry into the matter.
BJP Delhi President Adesh Gupta stated, “This report is proof that AAP looted the public’s money. The people of Delhi deserve answers. Those responsible for this scam should be held accountable, and legal action must follow.”
Congress, which has been relatively silent on the issue, also weighed in on the controversy, with its Delhi unit urging a deeper investigation into the matter. “If the CAG has flagged such major financial irregularities, then strict action must be taken against those responsible. The citizens of Delhi have suffered due to this mismanagement,” said a senior Congress leader.
Legal and Investigative Implications
With the CAG report now in the public domain, it is expected to further intensify legal and investigative proceedings against those involved in the formulation and implementation of the excise policy. The Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) had already launched probes into the alleged scam, leading to multiple arrests, including key AAP leaders.
Former Delhi Deputy Chief Minister Manish Sisodia, who was one of the key architects of the liquor policy, is currently facing legal proceedings related to the case. The new revelations in the CAG report may add to the evidence against him and other officials linked to the policy’s execution.
What Happens Next?
The findings of the CAG report are likely to have long-term political consequences in Delhi. The AAP government, now under new leadership, will face increasing pressure to justify the decisions made during its previous tenure. Additionally, opposition parties will use the report to question AAP’s governance and credibility ahead of upcoming elections.
The Delhi government may now have to review its approach to liquor regulation and introduce a more transparent policy framework to prevent future financial losses. Meanwhile, investigative agencies are expected to deepen their probe into the irregularities highlighted by the CAG report.
Conclusion
The CAG’s revelations about the Delhi liquor policy have reignited controversy and put AAP on the defensive. With ₹2,002 crore in estimated revenue losses, allegations of favoritism, and questionable decision-making, the issue is far from over. The political and legal fallout of this report will continue to unfold, shaping Delhi’s political landscape in the coming months.
As the debate over the excise policy intensifies, the people of Delhi await accountability and transparency in how public funds are managed. Whether or not legal action follows, the scandal serves as a cautionary tale on the importance of financial prudence and governance integrity.