New Delhi: Looking at the Delhi government’s loss of Rs 2,002.68 crore due to the liquor policy, which was implemented in November 2021 and scrapped in September next year, a report by the Comptroller and Auditor General (CAG) tabled in the Delhi Assembly on Tuesday pointed to wrong decisions and lapses.
The previous AAP government was plagued by the liquor policy, which resulted in the imprisonment of several of its leaders, including deputy chief minister Manish Sisodia and then-chief minister Arvind Kejriwal. The policy’s corruption claims are also said to have been a major factor in the AAP’s defeat in this month’s Assembly elections and the BJP’s formation of a government in Delhi following a 26-year hiatus.
The report breaks down the damage into different subheadings and was presented in the midst of a massive outcry in the Assembly, which also resulted in the suspension of 15 AAP MLAs. The largest portion of the loss, Rs 941.53 crore, was attributed to the new policy’s prohibition on liquor stores expanding in non-conforming locations, or those that do not meet land use standards for liquor vending.
The next major loss was Rs 890.15 crore due to non-issuance of tenders in 19 areas where licenses had been surrendered.“No excise duty was earned as a license fee from those 19 areas in the months following license surrender, and no other contingency arrangements were made to continue retail sale of liquor in these areas,” the report said.
The study further said that expenses were waived to licensees under the guise of COVID-19, resulting in a loss of Rs 144 in income, and that the “incorrect collection” of security deposits from zonal licensees cost Rs 27 crore. The total amount of money under these four subheadings is Rs 2,002.68 crore.
Violations
In addition to pointing out other infractions, the CAG report claims that the Delhi Excise Department failed to properly enforce Rule 35 of the Delhi Excise Rules, 2010, which prohibits granting related parties multiple licenses in various categories, including wholesaler, retailer, and HCR (hotel, clubs, and restaurants). According to accounts, some people benefitted from this.
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