The Comptroller and Auditor General of India (CAG) released a report on Delhi’s excise department. Chief Minister Rekha Gupta presented it in the assembly. According to the report, the AAP government’s excise policy resulted in a loss of over ₹2000 crore for Delhi’s exchequer.
Major Financial Losses
The report highlighted several reasons for the loss. It stated, "Audit noted that due to a number of issues ranging from weak policy framework to deficient implementation of the policy... there was a cumulative loss of approximately ₹2002.68 crore."
Furthermore, the excise department lost ₹890.15 crore as many liquor zones surrendered their licenses. Since the department failed to re-tender them, it could not recover the lost revenue. Additionally, the government lost ₹144 crore by granting an irregular waiver to liquor license holders during the Covid lockdown.
Policy Violations and Licensing Issues
According to the report, Delhi’s Master Plan 2021 prohibited liquor shops in non-conforming areas. However, the Excise Policy 2021-22 required at least two liquor shops in every ward.
As a result, the excise department did not consult the Delhi Development Authority (DDA) or the Municipal Corporation of Delhi (MCD) before opening tenders on June 28, 2021. Nevertheless, it issued liquor licenses in August 2021, planning to open the shops by November 17, 2021.
Unfortunately, on November 16, 2021, the DDA banned liquor shops in non-conforming areas. Consequently, license holders moved the Delhi High Court. On December 9, 2021, the court exempted licensees in 67 non-conforming wards from paying license fees. This exemption led to a loss of ₹114.50 crore per month, totaling ₹941.53 crore over time.
आज दिल्ली विधानसभा के पहले सत्र के प्रथम दिवस पर माननीय मुख्यमंत्री श्रीमती @gupta_rekha जी द्वारा CAG रिपोर्ट प्रस्तुत की गई, जो पारदर्शिता और सुशासन की दिशा में एक महत्वपूर्ण पहल है।
— Neeraj Basoya (@basoya_neeraj) February 25, 2025
"मोदी की गारंटी" केवल एक वादा नहीं, बल्कि हर संकल्प के पूर्ण क्रियान्वयन की प्रतिबद्धता है।… pic.twitter.com/ApD7KMXvmk
Covid-Related License Fee Waiver
Meanwhile, the Delhi government’s departments suggested denying license fee waivers since the tender did not mention them. However, the Minister in charge of excise rejected this advice. As a result, the minister approved a waiver from December 28, 2021, to January 27, 2022.
AAP Leaders Under Investigation
Eventually, in 2022, the Delhi government scrapped the excise policy after Lieutenant Governor VK Saxena ordered an investigation. Authorities accused several AAP leaders, including Manish Sisodia and Arvind Kejriwal, of corruption. As a result, both leaders spent months in jail for their alleged involvement.
Political Clash Over CAG Reports
Currently, the AAP and BJP continue to argue over the delay in presenting 14 CAG reports in the Delhi assembly. These reports are crucial for assessing the previous government’s performance.