CAG Report on Delhi Liquor Policy: ‘Rs 2,026 Crore Loss to Exchequer, Licence Norms Flouted’

Shocking Revelations in the CAG Report

A new report by the Comptroller and Auditor General (CAG) has revealed significant financial discrepancies in the implementation of Delhi’s liquor policy, resulting in a staggering loss of ₹2,026 crore to the state’s exchequer. The findings of this audit have sent shockwaves through the political and economic circles of the capital.

Violation of Licence Norms

  • Unapproved Licenses: The CAG’s audit found that several liquor vendors were operating with improper or expired licenses.
  • Non-compliance: The report noted a failure to comply with basic licensing norms, such as payment of license fees and adherence to procurement regulations. These violations have led to revenue losses and put the integrity of the policy at risk.

Impact on Revenue Generation

  • Revenue Losses: The breach of norms and poor execution of the policy has cost the Delhi government dearly, with the reported ₹2,026 crore loss in tax revenue and fees.
  • Transparency Concerns: The lack of proper oversight has raised concerns about the transparency and accountability of the entire liquor distribution system.

Political Repercussions

  • Opposition Criticism: The Delhi opposition parties have strongly criticized the ruling AAP government for the mismanagement of the liquor policy.
  • Call for Accountability: Opposition leaders are demanding an inquiry into the handling of the policy and accountability for the loss of public funds.

Government Response

In response to the report, Delhi’s ruling party has defended the policy, claiming that it was implemented with good intentions for economic growth. However, they have promised to review the findings and take necessary actions to correct any discrepancies.

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