A recent Comptroller and Auditor General (CAG) report has revealed Delhi’s now-scrapped 2021-22 excise policy had caused a huge revenue loss worth ₹2,002.68 crore. The report, laid in the Delhi Assembly, holds the loss against a weak policy framework and lack of proper implementation. Some of the major issues that have been found to have gone wrong are those of violations in the licensing process and the ignoring of advice of the expert panel by then Deputy Chief Minister and Excise Minister Manish Sisodia.
The CAG report has heightened political discussions, particularly in the wake of the recent Delhi Assembly elections. The Bharatiya Janata Party (BJP) made use of the liquor policy row as a campaign issue, which helped it emerge victorious against the Aam Aadmi Party (AAP). This victory sees the BJP regain power in Delhi after 27 years, winning 47 out of 70 seats.
On the report, senior AAP leader Atishi came to the defense of the erstwhile government’s excise policy, referring to the CAG’s recognition of prevalent corruption and smuggling problems before the policy was put in place. She claimed that interference from the Lieutenant Governor and probing agencies crippled the new policy, causing major revenue losses to Delhi.
The excise policy controversy has had major political implications. Former Chief Minister Arvind Kejriwal, who was arrested in March 2024 on charges of irregularities in the liquor policy, quit office soon after being granted bail in September 2024. This chain of events has transformed Delhi’s politics, leading to the BJP’s recent victory.
