Liquor Policy Caused Rs 2,002 Crore Revenue Loss: CAG Report
New Delhi: A report by the Comptroller and Auditor General (CAG), presented in the Delhi Assembly on Tuesday, has revealed that the scrapped liquor policy, introduced in November 2021 and cancelled in September 2022, caused a loss of Rs 2,002.68 crore to the Delhi government. The report points out several wrong decisions and mistakes that led to this massive financial loss.
The controversial liquor policy became a huge problem for the Aam Aadmi Party (AAP) government. It led to legal trouble for key leaders, including former Chief Minister Arvind Kejriwal and former Deputy Chief Minister Manish Sisodia, who were arrested in connection with corruption charges linked to the policy. These issues are seen as a key reason why the AAP lost the recent Delhi Assembly elections, allowing the BJP to take control of the city after 26 years.
The CAG report, which was presented amid heated arguments in the Assembly (leading to 15 AAP MLAs being suspended), breaks down the financial loss into different parts. The largest loss—Rs 941.53 crore—happened because liquor shops were not allowed in “non-conforming” areas. These are areas that do not meet the land-use rules needed for opening liquor shops.
Another major loss of Rs 890.15 crore happened because tenders were not issued for 19 zones where liquor licenses were voluntarily surrendered. The report explains that no excise revenue was earned from these areas because the licenses were not redistributed, and no alternative arrangements were made to keep liquor stores open.
The report also found other smaller losses, including Rs 144 crore from waiving fees for licensees under the Covid-19 relief plan and Rs 27 crore from incorrect security deposits collected from zonal licensees. When you add up all these losses, the total comes to Rs 2,002.68 crore.
This CAG report highlights the huge financial impact of the scrapped liquor policy and has sparked serious political debate in Delhi.
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