The Comptroller and Auditor General (CAG) report tabled by Delhi Chief Minister Rekha Gupta has uncovered massive irregularities and policy violations in the AAP government’s 2021-22 Excise Policy, resulting in a ₹2,002.68 crore revenue loss. The report highlights lack of transparency, favoritism, and violations of licensing rules, benefitting liquor cartels and big players at the cost of public revenue.
The report states that the cap on liquor shop ownership was increased from 2 to 54, allowing major businesses to dominate the market. This created a monopoly, with just three wholesalers—Indospirit, Mahadev Liquors, and Brindco—controlling 71% of the liquor supply in Delhi.
Further, the policy forced manufacturers to work with a single wholesaler, restricting competition and increasing prices. The CAG also flagged the violation of cabinet procedures, where major relaxations were granted without the Delhi Cabinet’s approval.
Summary of CAG Report on Delhi Liquor Scam:
— IANS (@ians_india) February 25, 2025
Revenue Loss – ₹2,002.68 Crore
Violation of Licensing Rules: Delhi Excise Rules, 2010 (Rule 35) was not implemented.
Increase in Wholesalers' Profit Margins: Margins were raised from 5% to 12% citing the need for Quality Control… pic.twitter.com/EUKXskhiiq
The report revealed that illegal liquor shops were set up in residential areas without Municipal Corporation of Delhi (MCD) and Delhi Development Authority (DDA) clearance. Additionally, L1 license holders were given power to manipulate Ex-Distillery Prices (EDP), inflating liquor prices artificially.
The CAG also criticized the failure to implement Rule 35 of the Delhi Excise Rules, 2010, weak verification of license holders, and the increase in wholesalers’ profit margins from 5% to 12%, citing quality control measures. Moreover, the AAP government allegedly ignored expert committee recommendations, raising further concerns over the policy’s intent.