The BJP-ruled Delhi government, in its audit report on AAP government’s 2021-22 liquor policy, said “cartelisation” in the process of issuing licences led to cumulative losses of over Rs 2,000 crore to the exchequer. “The policy provided for distribution of retail licenses in zones where one entity/person would get minimum 27 vends,” it said.
The report is one of 14 on the previous Aam Aadmi Party government’s performance to be tabled by the new Rekha Gupta-led government. It has pointed out that recommendations of an expert panel, formed to suggest changes for the formation of the now scrapped policy, were ignored by then deputy chief minister and excise minister Manish Sisodia.
The alleged liquor scam was a hot button issue in the run-up to the elections, with the BJP accusing senior AAP leaders of pocketing proceeds of the crime.
The audit report claimed a loss of revenue to the tune of Rs 941.53 crore, saying timely permissions were not taken for opening the liquor vends in non-conforming municipal wards .
Besides, there was loss of revenue to the tune of Rs 144 crore due to “irregular grant” of waiver to the licensees because of Covid pandemic related closure, the report said.
#BREAKING | CM #RekhaGupta tables CAG Report on Liquor Policy#TimesNow accesses details:
– Finding 1: Licenses given to 14 entities.
– ‘Concentration led to cartelization.’
– ‘Increased risk of cartelization’
– ‘Revenue loss of 2002 crore approx.’@tejshreethought &… pic.twitter.com/OSgg3WCZEJ
— TIMES NOW (@TimesNow) February 25, 2025
“Audit observed that in violation of Cabinet decision no. 3003, certain decisions, mentioned below, which had revenue implications were taken without taking approval from the Cabinet and/or obtaining the opinion of Lieutenant Governor. Relaxation regarding coercive action against the Licensee in case of any default of payment of license fee within the prescribed/stipulated time,” it said.
The alleged irregularities in the now-scrapped liquor policy had snowballed into a political punching bag used by the BJP after Lt Governor V K Saxena recommended a CBI probe in July 2022. Top leaders of AAP, including Arvind Kejriwal, Sisodia and Sanjay Singh, spent months in jail after probe agencies arrested them in the case.
The report said the Master Plan Delhi-2021 prohibited opening of liquor vends in non-conforming areas, but the Excise Policy 2021-22 mandated opening at least two retail vends in each ward.
“The excise department did not take timely action to work out modalities for proposed vends in non-conforming areas and the initial tender was floated on June 28, 2021 without taking comments from the DDA and MCD, it said.
Licences were allotted in August 2021 even before this issue was sorted out and the vends were scheduled to start operations from November 17, 2021.
Meanwhile, the Delhi Development Authority (DDA) issued an order on November 16, 2021, disallowing vends in non-conforming areas, it said.
The licensees challenged the order in the high court, which, on December 9, 2021, exempted them from paying any licence fee in respect of mandatory vends in 67 non-conforming wards.This resulted in the exemption of licence fee of Rs 114.50 crore per month.