New Delhi: In a significant revelation, the Comptroller and Auditor General (CAG) has disclosed that the Delhi government suffered a staggering loss of over Rs 2,000 crore due to the flawed 2021-2022 excise policy. This financial blow was attributed to a combination of weak policy frameworks and inadequate implementation. The CAG report, tabled in the Delhi Legislative Assembly by Chief Minister Rekha Gupta, highlighted multiple lapses in areas such as licensing, quality control, and enforcement.
The report identified the failure to secure timely permissions for liquor vends in “non-conforming municipal wards” as a major contributor to the losses, amounting to Rs 941.53 crore. These areas do not comply with land use regulations for liquor establishments. Additionally, the excise department incurred a loss of Rs 890.15 crore due to the surrender of licenses from certain zones and the failure to re-tender them.
Furthermore, the report noted an irregular waiver granted to licensees during the COVID-19 pandemic, resulting in a loss of Rs 144 crore. The policy’s design and implementation were criticized for ignoring expert panel recommendations, leading to legal and regulatory complications. The Delhi Development Authority (DDA) had disallowed liquor vends in non-conforming areas, exacerbating the issue.
The licensing process was marred by inefficiencies, with licenses issued before resolving regulatory issues. This led to 19 zonal licensees surrendering their licenses before the policy expired in August 2022. The Delhi High Court intervened, exempting licensees from paying fees for vends in non-conforming wards, further impacting revenue.
The alleged irregularities have become a political flashpoint, with top AAP leaders facing legal action. The CAG report’s findings are part of a broader effort to make governance more transparent, with plans to release more reports on various aspects of Delhi’s administration.
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