Delhi govt incurred loss of Rs 2,000 cr due to liquor policy: Rekha Gupta tables fist CAG report

In a scathing indictment of the Aam Aadmi Party (AAP), which ruled Delhi for over a decade, the BJP government tabled the Comptroller and Auditor General (CAG) report, titled ‘Performance Audit on Liquor Supply in Delhi,’ on the first day of the Delhi Assembly session (Tuesday, 25 February).

Chief minister Rekha Gupta presented the report, revealing massive financial losses exceeding Rs 2,000 crore due to the now-scrapped 2021-22 excise policy. The findings expose critical lapses, including flawed policy formulation, licensing irregularities, and financial mismanagement.

Key Findings of the CAG Report :

1. Revenue Loss Due to Licensing Failures: The report estimates a revenue loss of Rs 941.53 crore attributed to the delay in securing approvals for liquor vends in “non-conforming municipal wards.”

2. Surrendered Licenses and Losses: The excise department reportedly incurred a loss of Rs 890.15 crore due to the surrender of liquor licenses in these zones. The failure to initiate a timely re-tendering process exacerbated the financial setback.

3. Waivers and Additional Revenue Loss: The CAG flagged an additional Rs 144 crore loss due to the “irregular grant” of waivers to licensees citing Covid-related closures. This decision, according to the report, lacked due diligence and accountability.

4. Ignored Recommendations: The expert panel's recommendations for refining the excise policy were allegedly ignored by then-Deputy Chief Minister and Excise Minister Manish Sisodia, further contributing to policy inefficiencies.

It may be recalled here that in light of the findings, Lt. Governor VK Saxena had recommended a Central Bureau of Investigation (CBI) probe in July 2022.

The case has led to the arrests of several senior AAP leaders, including Delhi Chief Minister Arvind Kejriwal, Manish Sisodia, and Rajya Sabha MP Sanjay Singh. They have spent months in jail as investigations continue.

The Bharatiya Janata Party (BJP) has made the liquor scam, pol plank in assembly polls, and promised to table the CAG report.

Observers believe, the revelations will further erode public confidence in AAP, especially as it positions itself as a clean alternative in national politics.

Earlier in the day, before the tabling of the report the Assembly session began with AAP MLAs raising slogans of ‘Jai Bhim.’

AAP accused BJP government of disrespecting Dr. Ambedkar following which speaker Vijender Gupta suspended 12 AAP legislators, including Leader of Opposition (LoP) Atishi and senior leader Gopal Rai, for creating disruptions.

BJP said 14 pending CAG reports on the previous AAP's performance will be presented in the house. With more audit reports expected to be tabled in the coming days, their findings could significantly reshape India's political landscape in the months ahead.