Comptroller and Auditor General (CAG) audit on the Delhi government’s now-scrapped liquor policy resulted in a revenue loss of Rs 2,026 crore to the exchequer because of purported irregularities in its implementation.
Significant errors, policy deviations, and license-issuing irregularities are highlighted in the leaked CAG report. Additionally, it stated that AAP leaders reportedly benefited from kickbacks and that the policy did not accomplish its intended goals.
The report further stated that the Group of Ministers, which was led by Deputy Chief Minister Manish Sisodia at the time, ignored the expert panel’s recommendations. The CAG discovered that a number of important decisions were also made without the Lieutenant Governor’s permission or the Cabinet’s agreement.
The research also identifies several infractions in the granting of liquor licenses, with offenders purposefully avoiding punishment.
Issues with transparency: A notable lack of pricing transparency was seen, in addition to departures from the stated policy goals, such as the inability to distribute liquor vends fairly throughout the city.
Ignored Cabinet and LG approval: The CAG noted that a number of important decisions, including policy changes, were made without the necessary consent from the Lieutenant Governor (LG) or the Delhi Cabinet.
In Delhi, a number of organizations with dubious financial standing were permitted to bid for and be granted licenses to run liquor outlets in spite of allegations. To illustrate the absence of due diligence, one firm that was running at a loss actually had its license renewed.
Excise rules not ratified: The Delhi Legislative Assembly never considered ratifying the excise rules, which is a need for guaranteeing their validity.
