CAG Report Exposes Rs 2,000 Crore Loss in Delhi Liquor Policy Scam: What Went Wrong?
A shocking Comptroller and Auditor General (CAG) report tabled in the Delhi Assembly on Tuesday, February 25, 2025, has revealed that the Delhi government lost over Rs 2,000 crore due to its flawed 2021-2022 liquor policy. The report, presented by the new Rekha Gupta-led administration, accuses the previous Aam Aadmi Party (AAP) government of weak planning and poor execution, reigniting a fierce political battle in the capital.
The CAG pinpointed multiple failures in the now-scrapped excise policy. A staggering Rs 941.53 crore was lost because the government didn’t secure timely permissions to open liquor shops in “non-conforming” areas—zones not zoned for such businesses under Delhi’s Master Plan 2021. When the Delhi Development Authority (DDA) banned these shops in November 2021, licensees went to court and won a fee exemption, costing the state Rs 114.50 crore monthly.
Another Rs 890.15 crore slipped away after 19 licensees surrendered their permits in 2022, and the excise department failed to re-tender or replace them. The CAG also flagged a Rs 144 crore loss from an “irregular” fee waiver granted by then-Deputy Chief Minister Manish Sisodia during Covid closures in early 2022, despite no tender provision for it. Sisodia overruled objections, citing waivers given to hotels, a decision the report calls unjustified. Add to that Rs 27 crore lost from mishandled security deposits, and the total damage hits Rs 2,002.68 crore.
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The report doesn’t stop at numbers—it accuses Sisodia’s team of ignoring an expert panel’s advice. The Group of Ministers (GoM), led by Sisodia, allowed private firms to dominate wholesale liquor sales and permitted bidders to snag up to 54 shops instead of the recommended two, among other unapproved moves. These decisions, made without cabinet or Lieutenant Governor consent, fueled the financial mess.
This liquor policy has been a political hot potato since July 2022, when Lt Governor V K Saxena ordered a CBI probe into alleged corruption. That investigation saw AAP heavyweights like Arvind Kejriwal, Sisodia, and Sanjay Singh jailed for months, with the BJP claiming vindication. The party has long accused AAP of burying the CAG reports—14 in total, covering health, pollution, and more—to hide its failures.
Delhi’s new Chief Minister Rekha Gupta promised transparency, and Tuesday’s tabling delivers on that pledge. But the fallout is far from over. AAP calls it a BJP witch hunt ahead of elections, while the BJP insists it’s proof of AAP’s mismanagement. For Delhi’s taxpayers, the Rs 2,000 crore question looms: Who’s accountable for this massive loss? As probes deepen, the capital braces for more revelations.
