CAG report exposes Rs 2,002.68 Crore loss under scrapped Delhi liquor policy

A report by the Comptroller and Auditor General (CAG), presented in the Delhi Assembly, has revealed significant financial losses due to the controversial liquor policy implemented in November 2021 by the AAP government, which was subsequently scrapped in September 2022.

According to the report, the Delhi government suffered a loss of Rs 2,002.68 crore.

The now-defunct liquor policy became a significant burden for the previous AAP government, resulting in the imprisonment of several leaders, including former Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia, due to corruption allegations.

These allegations are believed to have contributed to the AAP's defeat in the recent Assembly elections, allowing the BJP to form a government in Delhi after 26 years.

Presented amidst an uproar in the Assembly, which saw the suspension of 15 AAP MLAs, the CAG report outlines various components of the loss.

The most substantial loss, Rs 941.53 crore, was due to the prohibition of opening liquor shops in non-conforming areas—those not adhering to land use norms for liquor vends.

Additionally, Rs 890.15 crore was lost because tenders were not issued for 19 zones where licenses had been surrendered. As a result, no excise revenue was obtained from these zones following the surrender of licenses, and no alternate arrangements were made to maintain liquor retail operations there.

Further, the report highlights a revenue loss of Rs 144 due to fees waived for licensees citing Covid-19 and Rs 27 crore caused by the "incorrect collection" of security deposits from zonal licensees. The total loss from these factors amounts to Rs 2,002.68 crore.