Delhi's Liquor Regulation Audit Sparks Controversy

The Delhi Assembly has mandated an action report on a CAG audit of liquor regulations, revealing significant flaws and revenue losses. Speaker Vijender Gupta highlighted deficiencies in licensing and pricing, demanding accountability from Chief Minister Rekha Gupta. Risks to public health and governance were noted.

The Delhi Assembly has initiated a directive requiring the government to present an action report on the previous CAG audit concerning liquor regulations for 2021-22 within a year. Speaker Vijender Gupta made the announcement on Thursday.

Officials from the Assembly Secretariat communicated these instructions to the Minister of Excise, under Chief Minister Rekha Gupta's leadership, and the Principal Secretary of Finance. This action followed the adoption of the second report by the Committee on Public Accounts (PAC) regarding the audit conducted by the Comptroller & Auditor General of India on the Performance Audit of Liquor Regulation and Supply in Delhi.

According to Gupta, the PAC's findings revealed significant systemic deficiencies within the Excise Department, highlighting regulatory flaws in licensing, pricing, quality control, and policy execution. These lapses resulted in revenue losses amounting to Rs 2,026.91 crore and posed risks to public welfare and administration. Allegations of non-compliance within licensing processes, discretionary pricing, and profit margin inflation during the previous administration were stated. Additionally, issues with the Excise Supply Chain Information Management System were cited, pointing to an overreliance on stock-taking methods and unaccounted-for barcodes, leading to potential revenue gaps.