Flip-flop over liquor policy: How AAP govt bungled up & caused losses to exchequer

New Delhi: After almost 9 months of operation and huge losses in state exchequer due to changes in the liquor policy, the Aam Aadmi Party (AAP) government chose to withdraw the new policy and reinforce the previous one.

Arvind Kejriwal government had boasted about the new liquor policy and also promised to replicate it in other states for ‘enhanced income to state and pleasant experience for customers’. However, inspite of adding revenue, the new policy miserably fell flat and cut down the revenue to exchequer sharply.

After the Delhi LG ordered CBI inquiry in new policy over irregularities & inconsistencies, the AAP government chose to revert to the old model.

Though, the AAP dispensation may continue to boast about its new policy but its mere revocation raises many questions and also speaks about gross failures of excise policy.

According to highly places sources, the cabinet note also acknowledged losses to the exchequer and windfall gain to existing licencess.

“Windfall Gains for existing License Holders”

While the liquor shops were to be opened in various zones of the capital, many couldn’t open due to lack of logistic support or some falling in the greener zone, prohibiting their opening.

Out of the 14 wholesale licencees, 4 license holders opted to discontinue their licenses. The revenue decline on account of surrendered zones is estimated to be around Rs. 193.95 crore per month.

The data from Excise Department shows that sale of liquor in 1st quarter of 2022-23 has increased by 59.46% in case of Whisky and to 87.25% in case of Wine as compared to FY 2019-20 but it remained in negative in terms of revenue.

Reduced Number of Liquor Shops

Under the new policy, the number of operational shops were reduced to 468 as against targeted number of 849. This resulted in windfall gain for the existing license holders as they kept selling the alcohol at reasonable rates.

The dubious dual and diabolic character of Kejriwal government was again at display when Manish Sisodia on July 30, did the drama of withdrawing the policy and returning to the same old policy that he had claimed to be a cause of corruption in the City.

According to highly placed sources, Delhi Deputy CM reportedly played key role in modification of Excise policy, extension of undue favours to the licencees and bringing waiver/reduction in licence fee.