Delhi Excise Policy Fallout: Massive Revenue Loss and Monopoly Concerns Unveiled

Delhi's AAP government's excise policy 2021-22 resulted in controversies, a CBI probe, and imprisonments. The CAG report highlights a revenue loss of Rs 2,002.68 crore due to weak policy execution and issues like monopolistic control and faulty licensing practices in liquor trade within the city.

A contentious excise policy launched by Delhi's former AAP government for 2021-22 has led to major controversies, incarcerations of top leaders, and is now under scrutiny following a CAG report. Some 2022 events, including a CBI enquiry prompted by Lt Governor V K Saxena, resulted in the policy's revocation.

The report highlighted a staggering Rs 2,002.68 crore loss in excise revenue blamed on poor policy framework and execution. Issues ranging from unauthorized liquor vends in certain wards to Covid-related waivers exacerbated the loss, according to the findings presented to the Delhi Assembly.

Additionally, the report underscores concerns over monopolistic practices. Wholesalers with manufacturing links controlled a significant portion of the market, leading to brand monopolies. Retail and licensing flaws, such as inadequate background checks and faulty quality compliance, further compounded the issue.

(With inputs from agencies.)