The 2021-22 Delhi excise policy created risks of monopolies and brand pushing by an "exclusive arrangement" between a few wholesalers and manufactures, allowing the distributors to dominate the liquor supply chain with just three of them controlling over 71 per cent of total liquor supply chain in the city.
The report, tabled in the Delhi assembly on Tuesday, pointed out that out of 367 registered IMFL brands, 25 brands accounted for nearly 70 per cent of total liquor sales in Delhi.
"The policy mandated an exclusive arrangement between a manufacturer and wholesalers, which led to the entire supply of all brands of a particular manufacturer being controlled by only one wholesaler.
"This becomes particularly relevant considering the fact that although 367 IMFL brands were registered in Delhi, very few popular brands formed the bulk of sale volume," the report said.
The CAG report, one of 14 on the previous Aam Aadmi Party government's performance to be tabled by the new Rekha Gupta-led dispensation, said that top 10 brands accounted for the sale of 46.46 per cent of liquor sold in Delhi whereas top 25 brands accounted for 69.50 per cent of the liquor sold.
"Of these 25 top selling brands, Brindco and Mahadev Liquor exclusively supplied seven brands each, followed by Indospirit which exclusively supplied six brands.
Further, of the 367 brands of IMFL supplied by 13 wholesale licensees, the highest number of brands were exclusively supplied by Indospirit (76 brands), followed by Mahadev Liquors (71 brands) and Brindco (45 brands).
These three wholesalers also accounted for 71.70 per cent of volume of Liquor sold in Delhi," it stated.