Delhi liquor policy: CAG report finds Rs 2,026 crore loss to exchequer from irregularities 

A report by the Comptroller and Auditor General (CAG) has uncovered a revenue loss of Rs 2,026 crore to the exchequer due to alleged irregularities in the implementation of the Delhi government’s now-repealed liquor policy. The CAG report, exclusively accessed by India Today, details several significant lapses, policy deviations, and violations in the process of issuing licences. 

The report also states that the policy failed to achieve its objectives and that AAP leaders are alleged to have received kickbacks. It further points out that recommendations made by the expert panel were ignored by the Group of Ministers (GoM) headed by former Deputy Chief Minister Manish Sisodia. 

The report, which has not yet been presented in the Delhi Assembly, reveals that all entities were permitted to bid despite complaints, and the financial viability of bidders was not properly assessed. Licences were granted to entities that were either reporting losses or had their licences renewed under questionable circumstances. 

Additionally, the report highlights that violators were intentionally not penalised. It also notes that key decisions regarding the policy were made without Cabinet approval or the Lieutenant Governor’s consent. Furthermore, the new rules were never presented for ratification in the Assembly, violating official procedures. 

The liquor policy, introduced in November 2021, was pitched as a game-changer for Delhi’s liquor retail market. It aimed to increase revenue and simplify the liquor trade. However, the policy's promises were overshadowed by allegations of corruption and financial irregularities.

The CAG report also suggests that the policy failed to meet its objectives, with key recommendations from an expert panel ignored by the Group of Ministers (GoM) led by then-Deputy Chief Minister Manish Sisodia. 

BJP vs AAP 

The report has handed BJP another political weapon just ahead of the high-profile elections in the national capital. BJP president J P Nadda claimed that the CAG report on the Delhi government’s excise police exposed intentional lapses, leading to a loss of Rs 2,026 crore loss to the exchequer. 

“Intoxicated by power, high on misgovernance. ‘AAP’DA model of loot in full display and that too on something like liquor,” he wrote in a post on X. He said it is just a matter of a few weeks before the AAP government is be voted out and punished for its misdeeds. "CAG Report on ‘Liquorgate’ exposes @ArvindKejriwal and @AamAadmiParty Gov. Intentional ‘Lapses’ in Policy Implementation. Rs 2026 Cr Loss to Exchequer money,” Nadda added. 

Reacting to the charges, AAP’s Rajya Sabha MP Sanjay Singh questioned the veracity of the claims, asking if the report was filed at the “BJP’s office”. Singh also stressed that the report was yet to be tabled in the Delhi Assembly. 

“Where is this CAG report? Where are these claims coming from? Is it filed at the BJP office? BJP leaders have lost their mental balance. The CAG report has not been tabled, and they are making such claims,” the AAP leader said.