CAG of India said the 2021-2022 excise policy resulted in a loss of more than Rs 2,000 crore to the Delhi government.
CAG Report: Delhi government suffered a loss of Rs 2,000 crore due to liquor policy latest news: In a report submitted on Tuesday to the Delhi Assembly, the Comptroller and Auditor General (CAG) of India said the 2021-2022 excise policy resulted in a loss of more than Rs 2,000 crore to the Delhi government. The reasons for this were varied and included a poor policy framework and shortcomings in implementing the excise policy.
The report, presented by the new Chief Minister Rekha Gupta-led government, stated misconduct in the licencing process during the last AAP government. It also pointed out that the former Deputy Chief Minister and Excise Minister Manish Sisodia did not take into account the suggestions of an expert committee that was constituted to recommend modifications in the now-abolished policy.
The report averred that the alleged scam regarding liquor, an issue before elections, cost a financial loss of Rs 41.53 crore. According to the report, due approvals were not secured within time to sell liquor through liquor shops in "non-conforming municipal wards," municipalities where the shops selling liquor are not permitted.
Chief Minister Gupta's report stated, "The excise department lost around Rs 890.15 crore in the form of license fees in these regions because the policy was not revoked and re-tenders issued in time." Further, an "irregular grant" of Rs 144 crore was given as relief to the license holders owing to COVID-19 induced closures.
The report mentioned that the "Master Plan Delhi-2021" did not allow the establishment of liquor shops in non-conforming areas, but the 2021-22 excise policy required a minimum of two retail shops per ward. The report said that the tender document for new shops indicated that no liquor shop would be established in non-conforming areas. It further added that any shop in a non-conforming area would be opened only after prior government approval.
The report concluded that the excise department did not take prompt action in detailing proposed shops in non-conforming areas and issued the first tender on June 28, 2021, without getting comments from the Delhi Development Authority (DDA) and the Municipal Corporation of Delhi (MCD).
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