CM Gupta: AAP favoured businessmen, placed personal above public interest
The Delhi government incurred a loss of Rs 2,002 crore because of issues in formulating and implementing the excise policy in 2021–22, according to the report of the Comptroller and Auditor General (CAG) that was tabled in the Assembly Tuesday.
Chief Minister Rekha Gupta, who tabled the report, fulfilling a BJP poll promise, said the purpose of the previous AAP government’s policy was to “give benefit to its favourite businessmen” and that “personal interests were placed above the interests of the public”.
The excise policy was withdrawn by the then AAP government after allegations of corruption. AAP leaders, including then Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia, were arrested in cases lodged by the CBI and ED.
The CAG report stated that the Excise Policy 2021–22 was framed to not allow the “formation of any monopoly or cartel in the liquor trade”, introduce transparency and to ensure equitable access of liquor supply.
According to the report, the Group of Ministers which oversaw formulation of the policy ignored “without justification” the recommendations of the Expert Committee formed to suggest changes. The recommendations included granting wholesale licence to private entities instead of a State-owned wholesale entity and limiting the number of vends an individual could be allotted, the report stated, adding that infirmities pointed out in the policy were ignored.
“… cases of related business entities holding licences across the supply chain and skewed distribution pattern highlighted the risk of exclusivity arrangements and brand pushing… Some retailers retained licences till the expiry of the policy period, some surrendered the same before the policy period was over. As retail licencees were limited in numbers, it caused disruption in supply because the policy did not contain any provision requiring the licencees to give advance notice before surrendering the licence,” it said.
The CAG report pegged the revenue loss at Rs 890 crore because the surrendered licences were not put up for fresh tenders.
About the losses owing to the decision to open liquor vends in non-conforming areas — a decision which eventually backfired because these vends could never open — the report stated: “In spite of being aware that vends were required to be opened in non-conforming wards in order to achieve the objective of equitable distribution, the Department did not take timely action to work out modalities leading to non-achievement of the objective. It also resulted in loss of revenue of approximately Rs 941 crore due to exemptions which had to be given to the zonal licencees.”
The report also pointed out other issues that led to losses:
· Waiver of licence fees of Rs 144 crore granted to the zonal licencees on the basis of Covid restrictions (December 28, 2021, to January 27, 2022), despite a mention in the conditions of the tender document that any commercial risk shall lie with the licencee.
· Incorrect collection of security deposits from zonal licencees led to the loss of revenue of around Rs 27 crore.
· Liquor testing laboratories, batch testing for rigorous quality assurance, and monitoring and regulation through the creation of a dedicated post were not ensured.
Chief Minister Gupta said, “With the CAG report being tabled, it has become clear that the sole purpose of the liquor policy implemented by the previous government in Delhi was to give benefit to its favourite businessmen… Not only has the public come to know the truth about the liquor policy that is looting Delhi, but it has also become clear how personal interests were placed above the interests of the public.”
Leader of Opposition Atishi, during a press conference, said, “The CAG report is reiterating what the AAP government has been saying all along — that the old excise policy resulted in losses to the Delhi exchequer. Not only that, but it also facilitated continuous liquor smuggling into Delhi from states like Uttar Pradesh and Haryana.”
A Public Accounts Committee, comprising MLAs from both BJP and AAP, will now be formed. The Committee will examine the report and can call government officials and former ministers for questioning. It then asks the government to take action on the recommendations and submit an Action Taken Report.
