A new report from the Comptroller and Auditor General (CAG) has shown that Delhi’s liquor policy, which has now been cancelled, led to a huge revenue loss of Rs 2,026 crore for the state. This excise policy, launched in November 2021, aimed to change how the liquor business worked in the capital by privatizing both the wholesale and retail areas. However, it attracted a lot of criticism and accusations of corruption, which eventually resulted in it being repealed in August 2022.
The CAG report revealed major problems with how the policy was created and carried out. It noted that private liquor vendors received unfair advantages, such as large discounts, rebates, and random license extensions. The policy also seemed to set a 12 percent profit margin for wholesalers, which was reportedly twisted to give 6 percent kickbacks to some leaders of the Aam Aadmi Party (AAP).
The report emphasized that these issues led to serious financial losses for the state.
Excise Policy Gave Undue Benefits to Private Players
Political parties such as the BJP and Congress strongly opposed the policy, claiming that the Delhi government was working hand-in-hand with private companies.
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They argued that the policy favored certain vendors while hurting public finances. The situation escalated when the Delhi Chief Secretary pointed out some procedural mistakes in how the policy was approved, leading to a call for an investigation by the Central Bureau of Investigation (CBI).
After that, the Enforcement Directorate (ED) started looking into the supposed liquor scam. They said that some people and companies received special favors in return for bribes. They also accused a group of liquor traders of shaping the rules to benefit themselves.
Delhi Govt Denies Allegations, Calls Report Politically Motivated
On the other hand, the Delhi government, headed by Chief Minister Atishi, has rejected these accusations and called the CAG report politically motivated. Still, this situation has sparked calls for more accountability and openness in how things are run.
The ongoing investigation brings up some important issues related to governance, accountability, and how private groups impact public policy with the excise policy controversy. This situation presents a major political and legal hurdle for the AAP government.