AAP LIQUOR POLICY CAUSED RS 2,000 CR LOSS, CLAIMS 'LEAKED' CAG REPORT

CONTINUED FROM P1 Nadda wrote on social media platform X, "Intoxicated by power, high on misgovernance.

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AAP'DA model of loot in full display and that too on something like liquor." He said it is just a matter of a few weeks before the AAP government is voted out and punished for its misdeeds.

The BJP has accused AAP of putting liquor shops ahead of schools amid the Covid-19 crisis.

The AAP, while introducing the new policy, had stated that it was introducing the now scrapped excise policy with the intent of streamlining the liquor trade, increasing transparency, combating monopolies, and improving the consumer experience. It was projected as a reform in the excise and retail liquor sector that would boost the revenue by Rs 9,500 cr.

However, its implementation, particularly the model introduced in 2021-22, fell short of expectations, resulting in unintended consequences, including financial losses and operational inefficiencies.

One major issue, as per the audit, was the shift to a presumptive excise duty system. Instead of charging excise duty per unit of liquor sold, the excise duty was subsumed into the zonal licence fee, based on sales figures of 2019-20, with a 10% growth factor.

Retailers, once they paid the zonal licence fee, had an incentive to increase sales without directly generating additional revenue for the government, leading to deep discounting practices that failed to increase excise revenue in proportion to the sales. This model reportedly caused a loss of Rs 2,002.68 crore in revenue due to its flaw.

All the prime accused in the case, including AAP chief Arvind Kejriwal, Manish Sisodia, Sanjay Singh, and BRS leader K. Kavitha, have been granted bail by the court. On 25 October of the previous year, the Supreme Court granted bail to Amandeep Singh Dhall, a businessman and director of Brindco Sales Private Limited, making him the latest accused to receive bail.