New Delhi:
A recent report by the Comptroller and Auditor General (CAG) has unearthed significant lapses in the Delhi government’s now-scrapped excise policy, leading to a staggering financial loss of Rs 2,026 crore. The report exposes a web of mismanagement, arbitrary decision-making, and alleged corruption that has left the Delhi government’s treasury severely depleted.
Key decisions, including the issuance of licenses and exemptions, were made without the necessary approvals from the cabinet or the Delhi Lieutenant Governor, highlighting a glaring lack of transparency and accountability. The CAG report also implicates Manish Sisodia, the former excise minister, and other AAP leaders in ignoring expert panel recommendations and facilitating kickbacks.
Detailed Lapses and Financial Implications
The CAG report paints a picture of widespread mismanagement in the implementation of the excise policy. Despite some bidders running significant losses, they were still granted licenses by the Arvind Kejriwal administration. This decision was made in disregard of expert panel recommendations, which were consistently ignored by the group of ministers led by Manish Sisodia.
All entities were allowed to bid on licenses regardless of complaints, and the financial condition of these bidders was not scrutinized before the licenses were issued. One entity, despite showing a loss, had its license renewed, and there were numerous violations in the issuance of licenses without any penalties imposed on the violators.
Many key decisions were taken arbitrarily, bypassing the necessary approvals from the cabinet or the Delhi LG. Additionally, the excise rules were not placed before the legislative assembly for ratification as required, further exacerbating the lack of transparency.
The financial impact of these lapses is substantial. Retailers surrendering their licenses before the policy expired resulted in a loss of Rs 890 crore. Exemptions granted to zonal licensees led to an additional loss of Rs 941 crore. The government also waived a license fee of Rs 144 crore due to COVID-19 restrictions, despite there being no provision for force majeure in the tender agreement. Incorrect collection of security deposits added another Rs 27 crore to the total loss.
The report criticizes the lack of transparency in pricing and the deliberate non-penalization of violators, indicating a systemic failure in the policy’s implementation.
