A recent report by the Comptroller and Auditor General (CAG) has revealed significant lapses in the now-scrapped excise policy of the Delhi government, estimating a loss of Rs 2,026 crore to the exchequer. The report, which sheds light on the financial implications of the alleged liquor scam, highlights how the Arvind Kejriwal-led administration’s decisions adversely impacted government revenue while benefiting certain private players.
The report stated that several key recommendations made by an expert panel were disregarded by the group of ministers led by former Deputy Chief Minister Manish Sisodia, who oversaw the excise department. It pointed out irregularities in the issuance of liquor licenses, noting that some bidders were granted licenses despite running at a financial loss. Additionally, the report claimed that violators of excise norms were not penalized, leading to further revenue losses.
Key Findings of the CAG Report
Ignored Recommendations: The group of ministers, led by Manish Sisodia, overlooked recommendations from an expert panel regarding the excise policy.
Licensing Irregularities: Licenses were issued to entities with poor financial health, and one entity continued to hold a license despite incurring losses.
Transparency Issues: The report highlighted a lack of transparency in the pricing structure of the policy.
Deliberate Lapses: Violators of excise norms were deliberately not penalized by the government.
Approval Bypasses: Several key decisions were made without the approval of the Delhi cabinet or the Lieutenant Governor (LG).
The report detailed that the government’s failure to re-tender liquor licenses surrendered by retailers before the policy’s expiration led to a loss of Rs 890 crore. Additionally, exemptions granted to zonal licensees caused another Rs 941 crore in losses.
The Kejriwal administration’s decision to waive Rs 144 crore in license fees during the COVID-19 pandemic, despite clear tender terms that excluded force majeure provisions, also contributed to the revenue loss. Furthermore, incorrect collection of security deposits resulted in an additional Rs 27 crore loss.
The CAG report emphasized that the cost of these lapses ultimately fell on the common man, while certain political leaders allegedly received kickbacks. The report underscored the need for stricter oversight and adherence to regulatory norms to prevent similar issues in the future.
The findings of the CAG report have intensified scrutiny on the Delhi government’s handling of the excise policy. With allegations of arbitrary decision-making and financial irregularities, the report raises critical questions about governance and accountability within the Kejriwal administration. The revelations are likely to fuel ongoing political debates and investigations surrounding the alleged liquor scam in the national capital.
