CAG Report Unveils Controversial Delhi Excise Policy

The CAG report on Delhi's excise policy, presented by CM Rekha Gupta, unveils irregularities under the previous AAP government. The policy, aimed at transparency and revenue, failed due to exclusivity contracts and retail zoning. BJP criticized AAP for corruption; Delhi LG promised corrective measures.

The Comptroller and Auditor General (CAG) has released a critical report on Delhi's excise policy, presented by newly elected Chief Minister Rekha Gupta in the Delhi assembly. The report highlights significant irregularities in the policy's formulation during the tenure of the previous Aam Aadmi Party (AAP) government.

According to the CAG, the Delhi excise policy for 2021-22 aimed to simplify the liquor trade, ensure transparency, curb monopolies, enhance revenue, and improve consumer experience. However, the report concludes that these objectives were unmet due to inherent design flaws, including exclusive agreements between manufacturers and wholesalers and a poorly defined retail zone, limiting licensing and raising monopolistic concerns.

Further, the CAG criticized the Excise Department for insufficient scrutiny concerning the financial and managerial viability of firms. Schemes like setting up liquor testing centers and rigorous quality checks were not realized. Addressing the discrepancy, Delhi LG VK Saksena stated the revelations would address past administrative failures, with a strategic 100-day development plan already in motion.