New Delhi: The Comptroller and Auditor General (CAG) report concerning Delhi’s excise policy was presented in the Delhi Legislative Assembly on Tuesday by Chief Minister Rekha Gupta.
This report, which had been previously withheld by the prior administration, illuminates considerable financial deficits and policy deficiencies identified in the 2021-2022 excise framework. Speaker Vijendra Gupta condemned the former government for concealing the report and disseminating misleading information regarding its findings.
According to the CAG report, the Delhi government encountered a cumulative loss exceeding ₹2,000 crore attributed to the ineffective excise policy. These losses were linked to a frail policy architecture, insufficient implementation, and breaches within the licensing process. Moreover, the report highlighted that recommendations from an expert panel convened to propose alterations to the excise policy were disregarded by then-Deputy Chief Minister and Excise Minister Manish Sisodia.
The audit unveiled a revenue deficit of ₹941.53 crore, primarily owing to delays in acquiring the necessary permissions to establish liquor shops in non-conforming municipal wards. Such wards do not satisfy land-use criteria for liquor establishments. The report noted, “The excise department suffered an approximate loss of ₹890.15 crore in licensing fees from these areas due to their surrender and the department’s failure to promptly re-tender them.” Furthermore, the irregular bestowal of pandemic-related concessions to license holders culminated in an additional revenue loss of ₹144 crore during the COVID-19 lockdown.
Speaker Vijendra Gupta expressed his astonishment that no CAG reports had been submitted to the Assembly since the fiscal year 2017-18. He recalled that as the then-Leader of the Opposition, he, alongside five other opposition leaders, had appealed to the President, the Speaker, the Chief Minister, and the Chief Secretary to present the reports to evaluate the financial state of the government.
Gupta accused the previous administration of transgressing constitutional norms by neglecting to present the CAG reports and lambasted the procrastination in forwarding the report to the Lieutenant Governor’s office.
The High Court had also raised grave concerns about the non-submission of the CAG report, thereby highlighting the negligence associated with its promulgation.
The presentation of the CAG report has reignited discussions surrounding the transparency and accountability of the prior government’s excise policy.