CAG Report Highlights Unauthorized Decisions; Accountability Needed for Delhi Liquor Policy Lapses
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Synopsis
The CAG report on Delhi's liquor policy from 2017-2022 reveals significant violations in quality control, licensing, and pricing. It emphasizes that decisions were made without the necessary authority's approval and calls for accountability regarding these lapses.
Key Takeaways
- CAG audit identifies violations in Delhi's liquor policy.
- Decisions made without competent authority's approval.
- Accountability for lapses must be established.
- Vends in non-conforming wards could not be opened.
- Critical measures planned were not implemented.
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 related to quality control, licensing, pricing, and failures in systemic enforcement. The audit emphasizes that decisions were made without the necessary approval from the competent authority, and accountability must be established for these 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 is scheduled 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 report.
The report, signed by Comptroller and Auditor General of India Girish Chandra Murmu, states that the actual implementation was sub-optimal, and the objectives behind the policy were not accomplished.
It indicates that Vends in non-conforming wards could not be established, and a fair distribution of retail vends was not achieved.
“The issuance and management of zonal licenses exhibited significant shortcomings. There was a lack of scrutiny regarding the financial capacity and management expertise of the business entities involved. Instances of related business entities possessing licenses across the liquor supply chain were noted,” the report reveals.
“Data on liquor supply indicates exclusive arrangements between zonal licensees and wholesalers, as well as Brand Pushing. The surrendering of zonal licenses during the extended policy period resulted in considerable revenue loss. Other critical initiatives planned in the policy, such as the establishment of laboratories and batch testing for quality assurance, and the creation of super premium vends, were not executed,” the report highlights.
The CAG report has urged for accountability to be assigned for these lapses.
“Responsibility and accountability should be established for the noted lapses, and the enforcement mechanisms need to be reinforced,” the CAG states in the report.
The report reiterates that decisions were made without the requisite approval from the competent authority.
“The audit observed that in violation of Cabinet decision no. 3003, certain decisions, listed below, which had revenue implications, were executed without seeking Cabinet approval and/or consulting the opinion of the Lieutenant Governor.”
The report outlines the following points: “(i) Relaxation regarding coercive measures against the Licensee for any default in payment of the license fee within the stipulated time (ii) Waiver/reduction of license fee (iii) Opening of liquor vends in conforming areas instead of mandatory liquor vends in non-conforming wards (iv) Extension of Excise Policy 2021-22 (v) Refund of Earnest Money Deposit (EMD) in the case of the Airport Zone (vi) Correction in the formula for calculating MRP for Foreign Liquor. Details are provided in Annexure XV.
