Delhi lost Rs 1,034 crore due to 2021-22 excise policy: Report

A report of the Delhi Assembly’s Public Accounts Committee (PAC) tabled in the House on Monday said losses to the tune of Rs 890 crore were incurred due to the failure of re-tendering of liquor shops, while another Rs 144 crore was lost in the wake of licence fee waiver under the excise policy 2021-22.

Tabling the report related to the excise policy framed and implemented during the previous AAP regime, PAC chairman and BJP MLA Ajay Mahawar said that the report was solely based on findings of CAG Audit and action taken notes of the excise department, so as not to affect any ongoing probes and legal cases.

The Comptroller and Auditor General (CAG) report on “Regulation and Supply of Liquor in Delhi” was laid before the Delhi Assembly on February 25, 2022. The CAG report was referred by the House to the PAC for further examination. The CAG Audit observed several discrepancies in the way the excise department monitored and regulated the supply of liquor in Delhi. The total financial implication of the audit findings is approximately Rs 2,026.91 crore.

According to the PAC report, the CAG found that retendering of surrendered licences was not done, leading to a loss of Rs 890.15 crore. It was observed that 19 zonal licenses were surrendered before the policy (2021-22) expired in August 2022. However, no retendering process was initiated by the excise department to operationalise the retail vends in these zones. The excise department, in its action taken note, said that it had sought directions for retendering the retail licenses for the year 2022-23, through communications dated February 4, 2022, March 16, 2022, and April 12, 2022, but did not receive any directions from the then Delhi Government or the competent Authority.

Manish Sisodia, who was the deputy chief minister in the AAP Government during the time, held the finance portfolio, which includes the excise department.

Further, the PAC report mentioned a loss of Rs 144 crore as flagged by the CAG audit due to “irregular” grant of waiver in licence fee during the COVID pandemic.

The CAG report mentioned that both the excise and finance departments proposed to the Government that the waiver should not be granted to the licensees due to the COVID-related lockdown period from 28 December 2021 to 27 January 2022.

The excise department, in its action taken note submitted to the PAC, said that the waiver was approved by the then Delhi Cabinet on July 14, 2022.

“The department agrees with the figure of Rs 144 Cr (approx) on account of COVID restrictions, which was granted by the then Deputy CM on February 1, 2022, with specific direction that the relief measures be implemented and the Council of Ministers be informed in due course,” said the department.

The Council of Ministers later ratified the decision of the deputy chief minister through a Cabinet decision dated July 14, 2022, it added.

The excise policy 2021-22 was withdrawn by the then AAP Government after a CBI inquiry was recommended by then LG VK Saxena into alleged irregularities and violations of norms in its formulation and execution.