The Comptroller and Auditor General (CAG) report on Delhi’s liquor policy, presented in the Assembly on Tuesday, has validated the Aam Aadmi Party’s (AAP) long-standing claims of large-scale corruption under the old excise policy. The report highlights how profits were manipulated by underreporting 28% of liquor sales, while unchecked smuggling from Uttar Pradesh and Haryana drained Delhi’s revenue.
Former Delhi Chief Minister and Leader of Opposition Atishi, flanked by senior AAP leaders Priyanka Kakkar and Jasmine Shah, asserted that the findings justify AAP’s decision to overhaul the flawed policy. Atishi stated, “In the Delhi Assembly, the CAG audit report on the Delhi government’s excise policy from 2017 to 2021 was presented. This report consists of eight chapters. Out of these, the first seven chapters focus on the audit of the old excise policy that was in place from 2017 to 2021.”
“These chapters highlight the flaws in the policy, expose the corrupt practices within it, and provide details of the malpractices that took place. The eighth chapter is dedicated to the new excise policy introduced by the Delhi government,” she added.
The former Chief Minister pointed out that the AAP government has repeatedly exposed the corruption in the old excise policy before the people of Delhi. The AAP government has consistently revealed how black marketing was rampant under the old excise policy, how liquor prices were artificially inflated, and how liquor manufacturers made excessive profits by manipulating prices.
Atishi mentioned that the AAP government has time and again pointed out that due to the corruption in the old excise policy and the practice of brand pushing, liquor was continuously being smuggled into Delhi from Haryana and Uttar Pradesh. “Today, the CAG report has validated the AAP government’s stance, confirming that the old excise policy from 2017 to 2021 was riddled with corruption,” she asserted.
Citing the CAG Report’s findings, the former Chief Minister said, “The CAG report states that under the old excise policy corruption occurred in two ways. First, there was corruption in the reporting of liquor sales, as the government’s revenue was based on the number of bottles sold. It is well known which party was associated with the liquor vendors, which party’s people were given liquor contracts, and who were given licenses for liquor manufacturing.”
“These vendors manipulated the excise calculations by falsifying the number of bottles sold. Chapter 5, Page 44 of the CAG report states that more than 28% corruption took place in liquor sales. The liquor vendors underreported sales by 28%, pocketing the unreported revenue for themselves,” she added.
Atishi further added that the report explicitly states that black marketing of liquor was taking place under the old excise policy. “Everyone is aware of which party’s people were in control of these liquor contracts. If you check Page 59 of the CAG report, it repeatedly states that liquor smuggling and black marketing were occurring from the premises of those holding liquor contracts, leading to a revenue loss for the Delhi government,” she pointed out.
The senior AAP leader stated that moreover, there was a constant claim that the profit margin was merely 5%. However, the CAG report clarifies that even a seventh-grade student understands how profit percentage is calculated—by subtracting the cost price from the selling price. Yet, these liquor vendors manipulated the cost price calculation and made massive profits under the guise of a 5% margin. Chapter 6, Page 58 of the CAG report demonstrates how liquor contractors fraudulently inflated cost prices to extract undue profits.
Atishi emphasized that the CAG report is reiterating what the AAP government has been saying all along—that the old excise policy resulted in losses to the Delhi exchequer. Not only that, but it also facilitated continuous liquor smuggling into Delhi from states like Uttar Pradesh and Haryana. “Everyone knows which party governs these states and who benefitted from this smuggling. Today, the CAG report has confirmed that the AAP government made the right decision by scrapping the old excise policy,” she added.
The former Delhi CM said that the CAG report further states that the new excise policy brought in by the AAP government in 2021 was designed to increase transparency, curb black market sales, and boost Delhi’s revenue. “I have been saying this for years, but today, the CAG report itself states in its eighth chapter that the new excise policy was structured to enhance the Delhi government’s revenue, ensure transparency, and prevent smuggling and black marketing,” she asserted.
Atishi highlighted that this policy was successfully implemented in Punjab. In 2021-22, Punjab’s excise revenue stood at ₹6,158 crores. However, with the implementation of the new excise policy in 2022, revenue surged to ₹8,841 crores within just one year. As the 2024-25 financial year comes to an end, the projected excise revenue stands at ₹10,146 crores. This means that from 2021 to 2025, Punjab witnessed a 65% increase in revenue due to this transparent policy.
She pointed out that the CAG report also highlights that if this policy had been properly implemented in Delhi, the excise revenue could have increased from ₹4,108 crores to ₹8,911 crores in just one year. “Now, the crucial question before the people of Delhi and the entire country is: If a bad policy was replaced with a good one, a transparent policy was introduced, then why was it not implemented correctly? Why did the government’s revenue fall short by ₹2,000 crores?
“Who was responsible for obstructing the implementation of this policy? Who prevented this ₹2,000-crore increase in government revenue? Based on the CAG report, a thorough investigation is necessary, and I expect that such an investigation will take place,” said the former Chief Minister.
Atishi asserted that there are three main culprits behind the obstruction of the policy’s implementation. The first is the BJP’s Lieutenant Governor, who deliberately blocked the implementation of the new excise policy, creating hurdles at every step. The second is the Central Bureau of Investigation (CBI), which registered an FIR against the policy before its first year was even completed. The third is the Enforcement Directorate (ED), which filed an ECIR (Enforcement Case Information Report) against the policy even before its first year had ended.
“After the LG’s obstruction, the CBI’s FIR, and the ED’s ECIR, no officer had the courage to sign off on the policy. The policy, which could have generated ₹8,900 crores annually, was not allowed to be implemented properly. Today, the CAG report confirms that this policy was deliberately obstructed,” she affirmed.
Atishi demanded an investigation against the BJP’s Lieutenant Governor, the BJP-controlled CBI and ED based on the CAG report. “An FIR should be registered to determine why this policy was stopped and why Delhi suffered a ₹2,000-crore loss,” she asserted.
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