New Delhi, March 27 Delhi minister Manjinder Singh Sirsa on Friday cited the CAG report on the now-scrapped excise policy in the Assembly to allege "deliberate policy manipulation" by the previous government, claiming it led to revenue losses of Rs 2,000 crore and extended undue benefits to select private entities.
Sirsa asserted that the findings of the Comptroller and Auditor General (CAG) report, along with observations made by the Public Accounts Committee, point towards widespread 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,” Sirsa said in the Assembly.
According to the minister, the report indicated that Delhi suffered a revenue loss of over Rs 2,000 crore between November 17, 2021 and August 31, 2022, due to flawed policy decisions and undue benefits extended to certain private entities.
“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 referred to structural changes under the policy and claimed that the number of wholesalers was reduced from 77 to 13, leading to concentration in the market.
“Out of these, three entities controlled nearly 77.7 per cent of the IMFL (Indian-Made Foreign Liquor) market,” he said, alleging that a competitive system had been turned into a “cartel-driven” one.
The minister further questioned the financial eligibility of some entities that were granted licences under the policy.
“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.
He said several bidders with minimal or no prior experience were allocated zones worth hundreds of crores of rupees, in complete ignorance of due diligence.
Sirsa also criticised the waiver of Rs 144 crore in licence fees during the Covid period, claiming that the decision was taken despite objections from the finance and excise departments.
“This was public money. Waiving such large sums, against official advice, raises serious questions about intent and accountability,” he said.
He further alleged that over Rs 900 crore in relief was granted to licensees on account of non-operational retail outlets in non-conforming areas, terming it a major avoidable loss to the exchequer.
The minister also claimed that key decisions, including refunds and financial relaxations, were taken without mandatory approvals and without placing files before the competent authority, including the lieutenant governor.
Sirsa said the matter had also come under judicial scrutiny and referred to the chargesheet filed in connection with the case. “The legal process is underway, and the truth will prevail,” he said.
He asserted that those responsible for the alleged misuse of public resources must be held accountable and said the people of Delhi deserved transparency and justice.
Sirsa also alleged in the House that a similar liquor policy-related irregularity was being replicated by the Aam Aadmi Party government in Punjab.
The Delhi excise policy case has remained a major political flashpoint between the BJP and the AAP, with both sides repeatedly trading allegations over its formulation and implementation.