Delhi's Liquor Licensing Lapses: Rs 2,026.91 Crore Quandary

The Delhi Assembly's Public Accounts Committee (PAC) has unveiled a report exposing a substantial financial loss due to lapses in the liquor excise policy of 2021-22. The report, presented in the House on Monday, highlights a loss of Rs 890 crore resulting from the failure to retender liquor shop licenses. Additionally, an extra Rs 144 crore was lost because of a license fee waiver granted during the COVID pandemic.

The findings are backed by an audit from the Comptroller and Auditor General (CAG) that was discussed in the Delhi Assembly on February 25, 2022. The CAG's detailed examination of the excise department's monitoring and regulation revealed a cumulative financial impact of Rs 2,026.91 crore. Key lapses included the non-retendering of 19 surrendered zonal licenses before the policy's expiry in 2022.

The findings bring into focus the decisions made during the tenure of Manish Sisodia, then Deputy Chief Minister, who managed the finance portfolio including the excise department. The PAC report aligns with CAG's concerns over the waived license fees, noting opposition from both excise and finance departments. The excise policy was eventually withdrawn following a recommended CBI probe into its alleged irregularities and violations.