CAG report tabled by Delhi CM; what it reveals

CAG report tabled by Delhi CM; what it reveals
25 Feb 2025

The Delhi Excise Policy caused a massive financial loss of ₹2,002 crore to the government, a Comptroller and Auditor General (CAG) report tabled in the assembly on Tuesday revealed.

Chief Minister Rekha Gupta presented the report in the Delhi Assembly on Tuesday. It exposes corruption, policy violations, and favoritism in the Aam Aadmi Party (AAP) administration.

Introduced in November 2021, the policy aimed to revolutionize liquor sales in Delhi but was withdrawn amid allegations of financial irregularities.

CAG report details policy violations and financial irregularities
Policy lapses

According to the Mint, the CAG report details lapses between 2017-2021 and the new excise policy of 2021-22.

It highlights violations in awarding licenses, lack of transparency in pricing Indian Made Foreign Liquor (IMFL), and poor quality control.

The report also highlights a ₹144 crore waiver given to licensees during COVID-19 restrictions, which went against the Excise Department's position.

Policy implementation leads to significant financial losses
Revenue impact

The policy's implementation resulted in a ₹941 crore loss due to exemptions for zonal licensees and a ₹890 crore loss from not re-tendering surrendered licenses.

The lack of a provision for advance notice before surrendering licenses further complicated distribution.

Another controversial finding was a ₹144 crore waiver granted to licensees between December 28, 2021, and January 27, 2022, citing COVID-19 restrictions.

Further, incorrect security deposit collections caused a ₹27 crore shortfall.

Report's findings spark controversy in Delhi Assembly

The tabling of the report caused an uproar in the Assembly, leading to the suspension of 12 AAP MLAs, including former Chief Minister Atishi.

Opposition AAP protested against the report's findings, while Bharatiya Janata Party (BJP) leaders accused AAP of hiding these reports for years.

Delhi BJP chief Virendraa Sachdeva called them a "list of the AAP's black deeds."

Pending CAG reports raise concerns about accountability
Accountability questions

The BJP government intends to table 14 CAG reports on AAP's administration performance.

One of them is a report on vehicular air pollution management.

The others include the Sheesh Mahal issue, the audit of public health infrastructure and health services, and the working of the Delhi Transport Corporation (DTC).

Once these reports are tabled, they will be sent to the Public Accounts Committee.

CM Gupta may also form a Special Investigation Team to investigate them," a BJP leader told CNBCTV18.