Decisions taken without approval; responsibility be fixed for lapses: CAG on Kejriwal's liquor policy

The Comptroller and Auditor General’s (CAG) audit report on Delhi’s liquor policy between 2017 and 2022 has flagged several violations in quality control, licensing, pricing, and systemic enforcement failures. It says that decisions were taken without approval of the competent authority and responsibility and accountability should be fixed for lapses.

A copy of the CAG Report on the "Performance Audit on Regulation and Supply of Liquor in Delhi" is available with IANS.

The report will be presented in the House on Tuesday immediately after the address by Lieutenant Governor (LG) Vinai Kumar Saxena. Chief Minister Rekha Gupta will present the report.

The report signed by Comptroller and Auditor General of India Girish Chandra Murmu writes that the "actual implementation was sub-optimal and objectives behind the policy were not achieved.

It says that Vends in non-conforming wards could not be opened and equitable distribution of retail vends could not be achieved.

"Issue and management of zonal licenses had major shortcomings. There was lack of scrutiny of the business entities with regards to their financial wherewithal and management expertise. Instances of related business entities holding licenses across the liquor supply chain were noticed," the report says.

"Liquor supply data indicates exclusivity arrangements between zonal licensees and wholesalers and Brand Pushing. Surrender of zonal licenses during the extended policy period further led to substantial revenue loss. Other important measures which were planned in the policy, like setting up of laboratories and batch testing for quality assurance, setting up of super premium vends etc., were not implemented," the report mentions.

The CAG report has called for fixing responsibility for the lapses.

"Responsibility and accountability should be fixed for the lapses observed and the enforcement mechanism should be strengthened," the CAG says in the report.

The report says that decisions were taken without the approval of the competent authority.

"Audit observed that in violation of Cabinet decision no. 3003, certain decisions, mentioned below, which had revenue implications were taken without taking approval from the Cabinet and/or obtaining the opinion of Lieutenant Governor."

The report mentions the points: "(i) Relaxation regarding coercive action against the Licensee in case of any default of payment of license fee within the prescribed/stipulated time (ii) Waiver/reduction in license fee (iii) Opening of liquor vends in conforming area in lieu of mandatory liquor vends to be opened in non-conforming wards (iv) Extension of Excise Policy 2021-22 (v) Refund of Earnest Money Deposit (EMD) in case of Airport Zone (vi) Correction in formulae for calculating MRP in case of Foreign Liquor. Details are given in Annexure XV."