‘Rs 2026 crore loss’: CAG report jolts AAP ahead of polls; exposes Kejriwal, says BJP

Citing critical ‘lapses’, lack of transparency, and deviations from policy objectives, the Comptroller and Auditor General (CAG) has pegged the losses to the state exchequer at a whopping Rs 2,026 crore in the implementation of the Delhi Excise Policy.

The said CAG report has not been officially released as yet but its purported content have been reported in some sections of the media.

This is the first time that a quantifiable estimate of the alleged liquor scam is presented, casting a shadow over the AAP government, ahead of the crucial Assembly elections on February 5.

Also read: Delhi excise scam | SC grants bail to Kejriwal, tells CBI to 'dispel notion of being a caged parrot'

Breakdown of losses

As per CNBC-TV18, the key components of the loss are as follows:

• While some retailers retained their licences for the entire policy period, others surrendered them prematurely. The government failed to re-tender these surrendered retail licenses, leading to an estimated loss of Rs 890 crore.

• Exemptions granted to zonal licencees accounted for a revenue shortfall of Rs 941 crore.

• The government waived licence fees totalling Rs 144 crore for zonal licensees, citing COVID-19 restrictions. However, the tender document explicitly stated that commercial risks were to be borne by the licencees, and there was no provision for a force majeure clause.

• Procedural lapses in collecting security deposits resulted in an additional revenue loss of Rs 27 crore.

The report claimed sub-optimal policy execution, financial mismanagement, and there seem to be procedural violations, with several entities granted licences despite red flags regarding their financial health, said CNBC-TV18.

Key findings, lapses

The CAG report reveals several key findings, including that expert panel recommendations were ignored by the GoM led by Manish Sisodia. All entities were allowed to bid despite complaints, and the financial condition of bidders was not red-flagged before issuing licenses.

In fact, one entity showed a loss, yet its licence was renewed. There were violations in the issuance of licences, and violators were deliberately not penalised. The report also highlights a lack of transparency in pricing, and that Cabinet or LG approval was not sought on many key decisions. Additionally, excise rules, which should have been placed before the legislative assembly for ratification, were not.

Also read: Delhi excise policy case: CBI files charge sheet against CM Kejriwal

The CAG has urged the government to fix responsibility for these lapses. While investigations are ongoing, the findings have intensified public scrutiny of the AAP government.

The CAG report also underlined several major lapses. It said financial and managerial capabilities of the entities were not thoroughly assessed and the policy objectives could not be achieved due to poor execution. “Planned initiatives, including the setup of labs and batch-testing facilities for quality assurance, were not executed. The policy failed to ensure an equitable distribution of retail outlets,” it said.

Kejriwal exposed, says BJP

Meanwhile, the BJP launched a scathing attack on the AAP government following these disclosures, as the party accused AAP of not tabling the CAG report in the Assembly to hide its misdeeds.

BJP president JP Nadda claimed the CAG report has exposed intentional lapses, leading to a loss of Rs 2,026 crore loss to the exchequer.

Nadda said on X, “Intoxicated by power, high on misgovernance. 'AAP'DA model of loot in full display and that too on something like liquor.” He said it is just a matter of a few weeks before the AAP government is voted out and punished for its misdeeds.

He alleged, “CAG Report on 'Liquorgate' exposes @ArvindKejriwal and @AamAadmiParty Gov. Intentional 'Lapses' in Policy Implementation. Rs 2026 Cr Loss to Exchequer money.”

Addressing a press conference, senior BJP leader Anurag Thakur said the CAG report has arrived at 10 major findings about the policy, which was scrapped by the AAP government amid a row, asserting that former Chief Minister Arvind Kejriwal will have to answer the questions it has raised.

Also read: Delhi polls | Modi-Kejriwal face-off intensifies as campaign gathers momentum

“He will have to reveal who pocketed the money,” Thakur said, alleging that Kejriwal is the kingpin of the scam. He also asked who will be the chief ministerial face of the AAP as it has been left with no “honest face”. Kejriwal cannot become chief minister, he said.

Asked about the BJP allegations, AAP Rajya Sabha MP Sanjay Singh said, “Where is the report? The BJP itself keeps saying no CAG report has been tabled.”

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