Delhi excise policy caused Rs 2,002 crore loss, PAC report tells Assembly

The now-scrapped 2021–22 excise policy implemented by the Aam Aadmi Party (AAP) government in Delhi resulted in an estimated loss of Rs 2,002 crore to the state exchequer, according to a report by the Public Accounts Committee (PAC) tabled in the Assembly on Monday.

The committee described the policy as “plucked out of thin air” and said its implementation ultimately proved to be a “total failure”.

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The excise policy was rolled out in November 2021 and withdrawn with effect from August 31, 2022, following allegations of irregularities that triggered a probe by the Central Bureau of Investigation (CBI).

PAC chairperson Ajay Mahawar said the panel’s findings were based solely on observations of the Comptroller and Auditor General (CAG) and responses from the concerned department. He clarified that the report was independent and not intended to influence ongoing judicial or departmental proceedings.

“According to the CAG report and documents provided by the department, there is no doubt that in the implementation of the flawed excise policy, the role of then deputy chief minister Manish Sisodia appears to be highly questionable,” Mahawar said.

The report highlighted specific losses, including Rs 890 crore due to the failure to re-tender liquor shops and Rs 144 crore owing to what it termed as “irregular” waivers in licence fees granted during the Covid-19 pandemic.

The development comes amid ongoing legal proceedings related to the alleged excise policy scam. In February this year, a Delhi court discharged AAP chief and former chief minister Arvind Kejriwal, Sisodia, former BRS MLC K Kavitha and 20 others in the corruption case, criticising the manner in which the CBI conducted its probe.

Subsequently, Kejriwal and Sisodia moved the Supreme Court last week after the Delhi High Court chief justice declined their request to transfer the CBI’s plea challenging their discharge to a different bench.

(With inputs from TOI)