The long-awaited Comptroller and Auditor General (CAG) report on the controversial Delhi Liquor Policy was finally tabled in the Delhi Assembly by newly elected Chief Minister Rekha Gupta, exposing shocking financial mismanagement and alleged corruption during the Aam Aadmi Party (AAP) regime. The revelations have ignited a political firestorm, with the ruling Bharatiya Janata Party (BJP) vowing stringent legal action against former Chief Minister Arvind Kejriwal and his aides.
CAG report unveils glaring irregularities
According to the CAG report, the 2021-22 Delhi Liquor policy, which was introduced under the pretext of simplifying liquor trade, increasing transparency, and boosting revenue, turned out to be riddled with structural flaws that facilitated monopolisation and cartelisation. The report highlights how an imposed exclusivity arrangement between liquor manufacturers and wholesalers, coupled with the creation of large retail zones, led to a market manipulated by a select few players, increasing the risks of corruption and financial loss to the exchequer.
The report further slams the Liquor Department for failing to conduct due diligence in assessing the financial capability and managerial expertise of license holders, ultimately leading to inefficiencies and revenue losses. Several critical provisions, such as the establishment of liquor testing laboratories, batch testing for quality assurance, and enhanced monitoring mechanisms, were also conveniently ignored.
‘AAP violated Constitution,’ says CM Rekha Gupta
Expressing her outrage, Delhi CM Rekha Gupta blasted the previous AAP government for withholding CAG reports since 2017-18, alleging a deliberate attempt to suppress damning financial disclosures.
“It is shocking that no CAG report was tabled in the Assembly after 2017-18. We had repeatedly demanded its release, but the AAP administration chose to keep the people of Delhi in the dark. Withholding these reports is akin to a criminal offense,” said Gupta.
The BJP-led government is now set to table 14 pending CAG reports, covering a wide range of sectors, including public health infrastructure, vehicular air pollution, and Delhi Transport Corporation operations. These reports, BJP leaders claim, will further expose the AAP government’s ‘black deeds.’
BJP tears into AAP, demands arrests
As soon as the report was tabled, BJP leaders wasted no time in launching a scathing attack on the former Kejriwal administration. Senior BJP MLA Satish Upadhyay accused AAP of systematic corruption across multiple departments, including transport, healthcare, and water supply.
“Today is a historic day for Delhi. Those who looted the people, who engaged in blatant corruption, will soon face the consequences. From Arvind Kejriwal to Atishi, Saurabh Bhardwaj to Somnath Bharti—each one of them will be held accountable. They cannot escape the law,” thundered Upadhyay.
Vijender Gupta, the current Assembly Speaker and a longtime critic of AAP’s financial dealings, accused the previous government of deliberately stalling the audits to cover up large-scale misappropriations. “We had raised concerns multiple times. The fact that these reports were hidden from public scrutiny is proof that the AAP government was neck-deep in corruption,” he asserted.
‘Sheesh Mahal’ controversy resurfaces
Among the most explosive findings of the pending CAG reports is the audit of the extravagant renovation of the Chief Minister’s residence, sarcastically dubbed ‘Sheesh Mahal’ by BJP leaders.
The project was initially estimated to cost Rs 7.91 crore, but the awarded contract already saw an increase, raising the cost to Rs 8.62 crore—an overrun of 13.21 per cent. However, the final cost of the project escalated to a staggering Rs 33.66 crore, reflecting an unprecedented rise of 342.31 per cent. This enormous cost inflation points to serious financial mismanagement and raises questions about the transparency and accountability of the government in handling public funds.
Public Health System Deficiencies
The CAG report highlights an alarming state of healthcare infrastructure in Delhi, with severe deficiencies in government hospitals, Mohalla Clinics, and AYUSH dispensaries. Among the 27 hospitals surveyed, critical medical facilities were found missing in a large number of them. Fourteen hospitals lacked ICU services, while 16 had no blood banks. Eight hospitals did not have an oxygen supply, and 15 did not provide mortuary services. Ambulance services were absent in 12 hospitals, endangering the lives of patients in need of emergency care.
The situation in Mohalla Clinics was equally distressing. Twenty-one of these clinics lacked basic toilet facilities, while 15 had no power backup, making them non-functional during electricity outages. Twelve clinics were found to be inaccessible for persons with disabilities, severely limiting healthcare access for a vulnerable section of society. In AYUSH dispensaries, 17 were found operating without power backup, seven had no toilets, and 14 did not even have access to drinking water. These findings indicate a complete failure in healthcare policy implementation, putting public health at risk.
Liquor Policy Scam – Rs 2,026 crore loss to public exchequer
The report also uncovers major financial irregularities in the Delhi government’s liquor policy, resulting in a massive revenue loss of Rs 2,026 crore. A total of Rs 941 crore in undue exemptions was granted to select vendors, while another Rs 144 crore in license fees was waived off without justification. Shockingly, liquor licenses were handed out to loss-making firms, raising suspicions of favoritism and corruption.
Quality control was entirely ignored in the liquor supply chain. Laboratories that were meant to be established for liquor testing were never set up, posing a significant public health risk. The policy-making process itself was deeply flawed, as the Group of Ministers (GoM), led by Manish Sisodia, bypassed expert recommendations while formulating the policy. The blatant violations and lack of regulatory oversight suggest that the liquor policy was designed to benefit a select group of private entities at the cost of public interest.
The tabling of the CAG report sparked pandemonium in the Delhi Assembly, with AAP MLAs staging vociferous protests against the BJP government. As Delhi LG VK Saxena addressed the House, chants of ‘Jai Bhim’ echoed across the chamber, leading Speaker Vijender Gupta to suspend twelve AAP legislators, including LoP Atishi and Gopal Rai, for causing disruptions.
BJP leaders, however, dismissed AAP’s protests as ‘drama’ to divert attention from their failures. “The AAP government never abided by the law. This House will function as per constitutional rules, not on Kejriwal’s whims. The time of lawlessness is over,” said BJP MLA Tarvinder Singh Marwah.
Delhi LG VK Saxena reaffirmed the BJP’s commitment to transforming Delhi into a ‘Viksit’ (developed) city, emphasising key priorities such as cleaning the Yamuna, eliminating garbage dumps, and restoring transparency in governance.
“Our intent is clear—we want development, not deception. The people of Delhi have given their mandate. Now, we will work tirelessly to undo the damage caused by the previous government and take Delhi to new heights,” Saxena declared.
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