New Delhi (India), February 25: The Delhi Assembly session has been extended by two days until March 1. The extension comes after Chief Minister Rekha Gupta’s government in Delhi tabled the Comptroller and Auditor General (CAG) report on the Delhi Excise Policy.
The Performance Audit on Regulation and Supply of Liquor in Delhi spans four years from 2017-18 to 2020-21 and examines the regulation and supply of Indian Made Foreign Liquor (IMFL) and Foreign Liquor in Delhi. This report is one of the 14 pending CAG reports on the performance of the previous Aam Aadmi Party (AAP) government.
According to the report, the audit revealed several discrepancies in the manner in which the Excise Department monitored and regulated liquor supply in the National Capital Territory of Delhi. It was found that the state government suffered cumulative losses exceeding Rs 2,000 crore due to the 2021-2022 excise policy.
The audit also raised questions about the effectiveness of the Excise Department in carrying out its responsibilities. The total financial implication of the findings was estimated to be approximately Rs 2,026.91 crore.
One of the major issues flagged was the Department’s failure to enforce Rule 35 of the Delhi Excise Rules, 2010, which prohibits issuing multiple licenses to related parties across different categories (Wholesaler, Retailer, HCR, etc.). This led to cases where entities holding various license types had common directorships.
The audit further revealed that licenses were issued without ensuring critical compliance checks. These included solvency verification, submission of audited financial statements, and checks on criminal antecedents, among others. Additionally, sales and wholesale prices declared in other states and over the course of the year were not thoroughly examined.
In a separate development, the BJP recently formed the government in Delhi after 27 years, winning 48 out of 70 seats in the assembly elections held earlier this month. The AAP secured only 22 seats, while Congress failed to secure any.
The extended assembly session will allow further discussions regarding the excise policy and other critical issues.