The Comptroller and Auditor General (CAG) of India has highlighted multiple violations in the implementation of Delhi’s liquor policy between 2017 and 2022, citing failures in quality control, licensing, pricing, and enforcement.
The audit report, which calls for accountability and corrective measures, states that several decisions were taken without the approval of the competent authority.
A copy of the CAG's "Performance Audit on Regulation and Supply of Liquor in Delhi" is with IANS. The report will be tabled in the Delhi Assembly on Tuesday, after an address by Lieutenant Governor (LG) Vinai Kumar Saxena. Chief Minister Rekha Gupta will place the report.
Written by CAG Girish Chandra Murmu, the report reveals that "the actual implementation was sub-optimal, and the objectives behind the policy were not achieved." It observes that liquor vends in non-conforming wards could not be opened as scheduled, barring the equitable distribution of retail outlets.
Key Findings of the CAG Report
Zonal Licensing Issues: The report points to serious deficiencies in the granting and management of zonal licenses, such as the lack of sufficient scrutiny of business entities in terms of their financial strength and management experience. It also reported instances where related business entities had licenses at various levels of the liquor supply chain.
Exclusivity & Brand Pushing: Liquor supply data analysis indicates that wholesalers and zonal licensees enjoyed exclusivity agreements, promoting brand pushing.
Revenue Losses: Surrender of zonal licenses in the extended policy period led to significant revenue losses.
Unfulfilled Policy Measures: Various intended measures, including establishing laboratories for batch testing and super-premium liquor vends, remained unimplemented.
Call for Accountability & Policy Violations
The CAG has underscored the requirement to rectify responsibility for such lapses and improve enforcement arrangements. The report further states that a number of revenue-affecting decisions were made without the approval of the Cabinet or the opinion of the Lieutenant Governor, contrary to Cabinet decision no. 3003.
These are:
- Relaxation of enforcement action against licensees who had defaulted in payments of license fees.
- Waiver or cut in license fees.
- Transfer of liquor vends from non-conformity to conforming areas.
- Extension of the 2021-22 excise policy.
- Refund of Earnest Money Deposits (EMD) for the Airport Zone.
- Improvement in the formula used for MRP of foreign liquor.
- The report emphasizes that these were fiscal decisions taken in absence of requisite approvals and add to the policy's complexities.
As the findings come to light, pressure is mounting on authorities to address the lapses and implement stricter regulatory measures to prevent future irregularities in Delhi’s liquor policy.
