CAG Highlights Approval Lapses in Kejriwal’s Liquor Policy
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Synopsis
The CAG's audit report on Delhi's liquor policy from 2017-2022 highlights significant lapses including violations in quality control and licensing. It calls for accountability and asserts that decisions were made without proper authority approvals.
Key Takeaways
- Violations in quality control and licensing were reported.
- Decisions made without necessary authority approvals.
- Call for fixing responsibility for lapses.
- Implementation of planned measures was suboptimal.
- Significant revenue losses noted due to licensing issues.
New Delhi, Feb 25 (NationPress) The Comptroller and Auditor General’s (CAG) audit report concerning Delhi’s liquor policy from 2017 to 2022 has identified multiple violations linked to quality control, licensing, pricing, and enforcement failures. It asserts that decisions were made without the necessary approval from the competent authority, emphasizing that responsibility and accountability must be established for these lapses.
A copy of the CAG Report titled "Performance Audit on Regulation and Supply of Liquor in Delhi" is in possession of IANS.
The report is set to be presented in the House on Tuesday, immediately following the address by Lieutenant Governor (LG) Vinai Kumar Saxena. Chief Minister Rekha Gupta will present the findings.
The report, signed by Comptroller and Auditor General of India Girish Chandra Murmu, indicates that the "actual implementation was less than optimal, and the intended objectives of the policy were not realized.
It notes that liquor vends in non-compliant wards could not be established, and a fair distribution of retail vends was not achieved.
Major flaws were found in the issuance and management of zonal licenses, including a lack of scrutiny regarding the financial capabilities and management skills of the business entities involved. Instances of related business entities possessing licenses throughout the liquor supply chain were observed,” the report states.
Data on liquor supply suggests exclusive agreements between zonal licensees and wholesalers, along with brand pushing. The surrender of zonal licenses during the extended policy period resulted in significant revenue loss. Other critical strategies planned in the policy, such as the creation of laboratories for quality assurance and the establishment of super premium vends, were not executed,” the report highlights.
The CAG report has insisted on assigning responsibility for the observed lapses.
“Responsibility and accountability must be established for the identified lapses, and the enforcement mechanisms need to be fortified,” the CAG states within the report.
It reiterates that decisions were made without the approval of the competent authority.
“The audit revealed that, in breach of Cabinet decision no. 3003, certain decisions with financial implications were made without obtaining Cabinet approval and/or the opinion of the Lieutenant Governor,” the report indicates.
The report outlines the following points: (i) Relaxation of coercive actions against the Licensee for any default in license fee payment within the stipulated timeframe (ii) Waiver or reduction in license fees (iii) Opening of liquor vends in compliant areas instead of mandatory vends in non-compliant wards (iv) Extension of the Excise Policy 2021-22 (v) Refund of Earnest Money Deposit (EMD) concerning the Airport Zone (vi) Correction in the formula for calculating MRP for Foreign Liquor. Further details can be found in Annexure XV.
