“The working of the excise department raises several questions about how it performs its duties. The total financial implication of the audit findings is about Rs 2,026.91 crore,” the CAG report noted.
Violations, improper licensing
The CAG report outlined several violations, including improper award of licenses to wholesalers, incorrect appointment of retailers, and lack of adequate monitoring of liquor distribution. The audit found that licenses were granted to entities that did not meet required excise regulations.
The findings come amid ongoing investigations into the alleged liquor scam, which has already led to arrests of senior leaders, including Delhi Chief Minister Arvind Kejriwal and Deputy CM Manish Sisodia, by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).
These developments have intensified the political rivalry between the AAP and BJP.The CAG’s report also pointed out issues with pricing controls. It stated that the liquor manufacturers and wholesalers were given discretionary power over pricing, a matter that is currently under scrutiny in the CBI’s investigation.
“This discretion allowed L1 licensees (manufacturers and wholesalers) to manipulate prices to their own advantage,” the report mentioned, adding that this led to a decline in sales and caused revenue loss to the government.
Compromised data accuracy: CAG report
Furthermore, the audit highlighted flaws in inventory tracking, citing that instead of using barcode scanning for end-to-end tracking of liquor sales, the excise department relied on post-sale stock reconciliation, which compromised the accuracy of data.
The report also found irregularities in the new excise policy for 2021-22, which had been a point of focus in earlier investigations by the ED and CBI.
The report detailed a revenue loss of Rs 890 crore due to the government’s failure to re-tender surrendered retail licenses and another Rs 941 crore loss linked to exemptions given to zonal licensees.
“These implementation issues led to a revenue loss of approximately Rs 2,002 crore,” the CAG report said.
The federal auditor also qiestioned the AAP government for bypassing the cabinet in formulating the new excise policy, noting that crucial decisions were made without the required permissions or consultation with the Lieutenant Governor.
This was a violation of the cabinet’s directives.
Additionally, recommendations from an expert committee, which had suggested several changes, were ignored, including the move to grant wholesale licenses to private entities instead of the state-owned wholesaler, and changes in how excise duty was to be collected.
AAP vs BJP: The politics over CAG report
In response, AAP spokesperson Priyanka Kakkar dismissed the report as “manufactured and baseless,” accusing the BJP of fabricating false allegations.
Kakkar further claimed that the report presented by the BJP was not authentic, as it had not been reviewed by key stakeholders, including the Chief Minister and the Lieutenant Governor, nor was it available on the CAG’s official website.
The BJP, on the other hand, seized the opportunity to target Delhi’s ruling party, with MP Anurag Thakur calling Kejriwal the “kingpin” of the liquor scam. BJP President J.P. Nadda also joined in, claiming that the CAG report exposed the “AAPda model of loot.”
BJP moves Delhi High Court; Court slams AAP
The Delhi High Court on Monday raised concerns over the delay in presenting the Comptroller and Auditor General (CAG) report by the Aam Aadmi Party (AAP) government.
While hearing a case in response to a petition filed by the BJP, the Court questioned the Delhi government’s actions, asking why the CAG report had not been presented in the Delhi Assembly.
“The way you have dragged your feet raises doubts about your bona fides,” the Court remarked, further stating, “You should have promptly forwarded the reports to the Speaker and initiated a discussion in the House.”
(With inputs from ToI and agencies)
