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Delhi Liquor Policy: CAG Report Reveals ₹2002 Crore Revenue Loss, Triggers Political Upheaval

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Delhi's political landscape is once again in turmoil. During the ongoing assembly session, Chief Minister Rekha Gupta presented a Comptroller and Auditor General (CAG) report related to the illicit liquor controversy.

New Delhi: Delhi's political scene is experiencing renewed upheaval. In the ongoing assembly session, Chief Minister Rekha Gupta tabled a Comptroller and Auditor General (CAG) report concerning the illegal liquor controversy. This report reveals several startling facts, potentially exacerbating problems for the Aam Aadmi Party (AAP) government.

The CAG report explicitly states that the Delhi government's 2021-22 liquor policy was riddled with irregularities. According to the report, this policy resulted in a revenue loss of approximately ₹2002.68 crore for Delhi.

Key Findings of the CAG Report

* Irregularities in License Allocation: The government granted liquor licenses without verifying necessary criteria. Checks for bankruptcy, financial documents, sales data, and criminal backgrounds were not conducted.
* Undue Profits for Wholesalers: The wholesale margin was increased from 5% to 12%, resulting in substantial profits for companies.
* Institutional Weaknesses Ignored: Financially weak entities were granted liquor licenses, creating market imbalance.
* Expansion of Monopoly: The policy allowed liquor manufacturers to associate with only one wholesaler. As a result, just three companies—Indospirit, Mahadev Liquor, and Brindco—captured 71% of the market.
* Rise in Illegal Liquor Trade: The report indicates that the government failed to curb the illegal country liquor trade due to supply restrictions, limited brand options, and bottle size limitations.
* Unwarranted Concessions: The government granted concessions to licensees without cabinet approval and the Lieutenant Governor (LG)'s advice.
* Illegal Liquor Shops: Liquor shops were permitted in many areas without MCD and DDA approvals. Subsequently, the sealing of four illegal shops highlighted policy flaws.
* Neglect of Quality Control: In 51% of cases involving foreign liquor, quality test reports were either outdated, missing, or lacked dates.
* Inaction of Excise Intelligence Bureau: Effective measures against smuggling were not taken. Despite repeated instances of smuggling, the government failed to take appropriate action.

Opposition Attack and Political Tension

Following the presentation of the CAG report, the opposition created a significant uproar in the assembly. Opposition parties allege that the Kejriwal government deliberately attempted to suppress this report. Consequently, Assembly Speaker Bijender Gupta suspended 22 MLAs from the house, with 21 MLAs facing a three-day suspension.

AAP Government's Clarification

The AAP government completely denies these allegations, claiming the report is politically motivated. The government asserts that the new liquor policy reduced corruption and increased revenue in Delhi. However, the CAG report's findings contradict the government's claims. What's next? Following the CAG report, investigations into this matter may intensify. There is a possibility that the central government might take b action against the AAP government based on this report.

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