CAG report on Delhi liquor policy scam: Big revelations cause a stir!

The CAG report presented in the Delhi Assembly exposed serious irregularities in the Aam Aadmi Party’s liquor policy, causing financial loss of about Rs 2,002.68 crore to the Delhi government.

Following are the key findings of the report:

Shortcomings in Revenue Management:

• Non-opening of liquor shops in non-compliant areas led to loss of Rs 941.53 crore
• Rs 890 crore lost due to non-re-auctioning of relinquished licences
• Despite opposition from the Excise Department, Rs 144 crore license fee waived

Irregularities in the Licensing Process:

• Not conducting proper financial and criminal background checks of licensees
• Increasing wholesalers’ margin from 5% to 12%
• Only 22 private entities got licenses for 849 liquor shops

Problems in Market Structure:

• Only three wholesalers control 71% of the liquor supply
• Promoting monopoly by restricting competition
• Centralised trade with up to 54 stores allowed to operate

Weaknesses in Quality Control:

• Sale of liquor without quality test report
• Inadequate testing for harmful substances
• Violation of FSSAI standards

Shortcomings in Enforcement:

• Weak action on liquor smuggling
• No penalties for policy violators
• Use of old technologies

The report is likely to increase the troubles of former Delhi Chief Minister Arvind Kejriwal and other Aam Aadmi Party leaders.