Delhi Cabinet Minister Manjinder Singh Sirsa said in the Assembly on Friday that the Comptroller and Auditor General (CAG) report concerning the now-scrapped excise policy has exposed the “deliberate policy manipulation” under the previous government led by Arvind Kejriwal.
During the discussion in the Legislative Assembly on the CAG report on excise policy, Sirsa asserted that the findings, along with observations made by the Public Accounts Committee (PAC), point towards lapses across multiple departments, with the excise policy being one of the most glaring examples.
“The CAG report clearly establishes that this was not a policy error but a deliberate design. From education to healthcare, transport to power, irregularities have surfaced across departments. However, the excise policy stands out as one of the biggest instances of financial mismanagement and policy manipulation,” said Sirsa.
The Minister stated that as per the CAG report, Delhi suffered a revenue loss of approximately over Rs 2,000 crore between November 17, 2021 and August 31, 2022, attributing it to flawed policy decisions and undue benefits extended to select private players.
“This policy was crafted in a manner that benefited a select few. The evidence indicates that the policy framework bypassed institutional processes and was imposed upon the department,” he added. Sirsa further highlighted structural changes introduced in the policy that allegedly led to market concentration: The number of wholesalers was reduced drastically from 77 to 13, creating conditions of monopoly and out of these, three entities controlled nearly 77.7 per cent of the IMFL market.
“A competitive market was converted into a cartel-driven system. This was an effort to systematically capture the market,” the Minister stated. The Minister also pointed to the CAG report’s serious questions regarding the financial credibility of several entities awarded licenses.
“It is shocking that companies with negligible income, no profit history, or even negative net worth were granted licenses to operate high-value zones. In some cases, firms reporting losses of Rs 52 crore and Rs 37 crore were still allowed to continue operations. This defies all established norms of financial scrutiny,” he said.
Sirsa also criticised the AAP government’s decision to waive Rs 144 crore in license fees during the pandemic, despite objections from the Finance and Excise Departments. “Owing to these relaxations and their malafide intentions, the excise department incurred huge loss despite increase in per bottle sale,” Sirsa said.
“No individual, regardless of position, is above the law. The people of Delhi deserve transparency and justice. The findings of the CAG and the deliberations of the PAC have brought critical facts to light. Those responsible for misusing public resources will have to answer before the law,” he said.
The Minister alleged before the House that Arvind Kejriwal and the Aam Aadmi Party government in Punjab are replicating a similar alleged liquor scam in Punjab on the lines of Delhi.