Tue Feb 25 11:48:01 UTC 2025: ## Delhi’s Scrapped Liquor Policy Caused ₹2,000 Crore Loss: CAG Report

**New Delhi:** A Comptroller and Auditor General (CAG) report tabled in the Delhi Assembly on Tuesday revealed a staggering ₹2,002.68 crore loss to the Delhi government due to its now-scrapped liquor policy, implemented in November 2021 and revoked in September 2022. The report, presented amidst significant disruption in the Assembly, details a series of flawed decisions and omissions contributing to the substantial financial deficit.

The largest portion of the loss, ₹941.53 crore, stemmed from the policy’s prohibition of liquor shops in non-conforming areas. An additional ₹890.15 crore was lost due to the failure to issue tenders for 19 zones after license surrenders, resulting in zero excise revenue from these areas. Further losses included ₹144 crore from waived licensee fees attributed to COVID-19 and ₹27 crore from incorrect security deposit collection.

The CAG report also highlights significant policy violations. The Delhi Excise department allegedly failed to enforce Rule 35 of the Delhi Excise Rules, 2010, which prevents related parties from holding multiple liquor licenses. This, sources claim, benefited specific individuals. The report criticizes the justification for increasing the wholesaler margin from 5% to 12%, citing the supposed need for government-approved quality-control labs, which were never fully implemented. This increase, the report suggests, facilitated monopolisation and cartelisation, with three wholesalers controlling over 70% of Delhi’s liquor sales.

The report also reveals that sales of top-selling whiskey brands were disproportionately higher in private shops compared to government outlets, leading to further revenue loss for the Delhi government. For example, only 9.25% of Royal Stag Reserve/Premier whiskey sales occurred in government shops.

The findings of this report are likely to further fuel political tensions in Delhi, where the controversial liquor policy was a major factor in the recent Assembly elections which saw the BJP return to power after a 26-year absence. The policy’s implementation also led to arrests of several AAP leaders, including former Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia, on corruption allegations.

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