CAG report: New excise policy caused Rs 2,000 cr loss

The BJP government in Delhi led by Chief Minister Rekha Gupta on Tuesday tabled the CAG report on the Delhi Excise Policy.

- TBG NETWORK NEW DELHI

The 'Performance Audit on Regulation and Supply of Liquor in Delhi' covers a period of four years from 2017-18 to 2020-21 and examines regulation and supply of Indian Made Foreign Liquor (IMFL) and Foreign Liquor in Delhi.

The report is one of the 14 pending CAG reports on the previous Aam Aadmi Party government's performance.

According to the report tabled today, the audit observed several discrepancies in the way Excise Department monitored and regulated the supply of liquor in the National Capital Territory of Delhi.

It showed that the state government suffered cumulative losses of more than Rs 2,000 crore due to the 2021-2022 excise policy.

The working of the Excise Department raises several questions about the way the Department is fulfilling its responsibility.

Total financial implication of the audit findings is approximately Rs 2,026.91 crore, as per an overview of the report.

The audit observed that the Department could not ensure the implementation of Rule 35 of Delhi Excise Rules, 2010, which prohibits the issue of multiple licenses of Performance Audit on Regulation and Supply of Liquor in Delhi - different category (Wholesaler, Retailer, HCR etc.) to related parties, leading to the existence of common directorship among entities holding various License Types.

The Audit says, the Department was issuing licenses without checking various requirements relating to Excise Rules and Terms and Conditions for the issue of different type of licenses.