Delhi Election 2025: Lapses in the implementation of the controversial, now-scrapped Delhi excise policy has led to a loss of approximately ₹2,002 crores to the government, according to a leaked report released by the Comptroller and Auditor General (CAG) on January 11, just weeks before the Delhi Assembly Election 2025.
The CAG report highlighted that while the common man bore the cost, Aam Aadmi Party (AAP) leaders received ‘kickbacks’. It pointed to glaring lapses, policy violations, and questionable decisions that favoured certain entities while sidelining due process.
“The ten findings of the CAG report are very detailed. I will explain them to you one by one. The first finding is about revenue loss of ₹2026 (actually ₹2002) crore. The second finding is a deviation from the objectives of the policy. The third finding is that the expert panel's recommendations were ignored by the Group of Ministers (GOM),” former Union Minister and BJP MP Anurag Thakur said in a press conference.
The liquor policy, introduced in November 2021, was pitched as a game-changer for Delhi’s liquor market. However, the policy faced criticism amid allegations of corruption and financial irregularities. Top AAP leaders in the Delhi government, including Arvind Kejriwal and Manish Sisodia, were arrested in the case and eventually released on bail.
The CAG report also suggests that the policy failed to meet its objectives, with key recommendations from an expert panel ignored by the Group of Ministers (GoM) led by then-Deputy Chief Minister Manish Sisodia.
“The year 2025 is ongoing, but I am here to talk about 2026. Because while 2025 is the year of finances, the liquor scam has led to a loss of ₹2026 crore. Yes, the Delhi liquor scam resulted in a fiscal deficit of ₹2026 crore. Remember, the Aam Aadmi Party had promised to build schools, but instead, liquor shops were created. They spoke of brooms but ended up promoting liquor,” Thakur said.
The CAG report titled “Performance Audit on Regulation and Supply of Liquor in Delhi” also said that many key decisions were taken arbitrarily without the approval of the cabinet or the Delhi Lieutenant Governor (L-G).
The CAG report alleges that some AAP leaders benefited from kickbacks tied to the policy. This led to investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), culminating in the arrests of senior AAP leaders.
The report dated March 2024 has not been been released officially. The report is out in the middle of the peak campaign in Delhi ahead of the February 5 assembly polls.
The fight in the national capital is triangular. The three major parties – the AAP, the BJP and the Congress – are in the poll fray.
The AAP, led by Arvind Kejriwal, won assembly elections in 2015 and 2020 quite comfortably. In the last two elections, the BJP was left with single-digit seats in the Delhi assembly, and the Congress was completely wiped out after ruling Delhi for 15 years before 2013.
Breaking down the ₹2,002 Crore to the Delhi government treasury, the CAG report said that some retailers surrendered their licenses before the policy expired, and the government did not re-tender them, which led to the loss of ₹890 crores.
The Delhi government made exemptions for zonal licensees, which led to the loss of ₹941 crores.
Arvind Kejriwal's government had then allegedly waived a license fee of ₹144 crores due to COVID-19 restrictions, which led to further revenue loss.
The incorrect collection of security deposits resulted in a loss of ₹27 crores, the CAG report said.
The report also flagged a ‘lack of transparency in the pricing of IMFL’, ‘inadequate quality control’, ‘weak regulatory functioning,’ 'issue in award of licenses, among other things in the implementation of the Excise Policy.
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