CAG report on Delhi's liquor regulation tabled in Delhi Assembly; excise policy 2021-22 caused ₹2,002 crore loss
Delhi Chief Minister Rekha Gupta tabled the CAG's performance audit on 'Regulation and Supply of Liquor in Delhi' in the Delhi Legislative Assembly on 25 February 2025; it put the revenue loss from the 2021-22 excise policy at about ₹2,002 crore.
Summary
On 25 February 2025 the Comptroller and Auditor General of India's Report No. 1 of 2024, a Performance Audit on 'Regulation and Supply of Liquor in Delhi', was placed in the Delhi Legislative Assembly; Chief Minister Rekha Gupta tabled it. The CAG said implementation issues in the New Excise Policy 2021-22 led to a revenue loss of approximately ₹2,002 crore: about ₹941 crore from exemptions given to zonal licensees in non-conforming wards, about ₹890 crore because surrendered retail licences were not re-tendered, ₹144 crore from licence-fee relief granted on the basis of COVID restrictions, and about ₹27 crore from incorrect collection of security deposits. The report also noted that planned quality measures such as liquor testing laboratories were not ensured. Under Article 148 of the Constitution the CAG is appointed by the President.
Key facts
- Report
- CAG Report No. 1 of 2024 - Regulation and Supply of Liquor in Delhi
- Tabled
- 25 February 2025, Delhi Assembly, by CM Rekha Gupta
- Total loss (policy 2021-22)
- About ₹2,002 crore
- Non-conforming wards
- About ₹941 crore
- Surrendered licences not re-tendered
- About ₹890 crore
- COVID fee relief
- ₹144 crore
- CAG appointment
- By the President, Article 148
Practice MCQs 4 questions
According to the CAG report tabled in the Delhi Assembly on 25 February 2025, the Delhi Excise Policy 2021-22 caused a revenue loss of approximately:
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Correct answer: D — 2,002 crore rupees
The CAG said implementation issues of the new excise policy led to a revenue loss of approximately 2,002 crore rupees.
Who tabled the CAG report on 'Regulation and Supply of Liquor in Delhi' in the Delhi Legislative Assembly on 25 February 2025?
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Correct answer: C — Rekha Gupta
Chief Minister Rekha Gupta tabled the CAG report in the Delhi Assembly.
Which component accounted for the largest share of the revenue loss from Delhi's Excise Policy 2021-22, as per the CAG?
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Correct answer: A — Exemptions to zonal licensees in non-conforming wards
Exemptions given to zonal licensees in non-conforming wards cost about ₹941 crore, the largest component; not re-tendering surrendered licences cost about ₹890 crore.
Consider the following statements about the Comptroller and Auditor General of India (CAG): 1. Under Article 148, the CAG is appointed by the President by warrant under his hand and seal. 2. Under Article 151(1), the CAG's reports relating to the accounts of the Union are submitted to the President, who causes them to be laid before each House of Parliament. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Article 148 provides that the CAG is appointed by the President by warrant under his hand and seal, and Article 151(1) requires the CAG's Union audit reports to be submitted to the President for laying before each House of Parliament. Both statements are correct.