CAG report reveals that Arvind Kejriwal embezzled Rs 2,026 crore in a liquor scam.

Delhi ex-CM Kejriwal and his team reportedly embezzled Rs 2,026 crore through an opaque liquor policy, favored licensees and illegal decisions, per CAG report.

January 11th 2025.

CAG report reveals that Arvind Kejriwal embezzled Rs 2,026 crore in a liquor scam.
In a shocking revelation, a report by the Comptroller and Auditor General of India (CAG) has exposed the alleged involvement of former Delhi Chief Minister Arvind Kejriwal and his ministers in a liquor scam worth over Rs 2,026 crore. The report, titled "Report of the Comptroller and Auditor General of India on Performance Audit on Regulation and Supply of Liquor in Delhi," has brought to light the lack of transparency and illegal decision-making in the liquor excise policy, which has allegedly benefitted certain licensees at the expense of the public.

The findings of the report, presented by CAG Girish Chandra Murmu, have dealt a major blow to the ruling Aam Aadmi Party (AAP) just before the upcoming Assembly elections on February 5. This has given the opposition parties, BJP and Congress, fresh ammunition to attack the AAP, labeling the scandal as "Liquorgate."

Murmu has recommended holding those responsible for the lapses accountable and strengthening the enforcement mechanism. The report was also signed by Principal Accountant General of Delhi, Aman Deep Chatha. The Leader of Opposition in Delhi Assembly, Vijender Gupta of BJP, has accused the AAP government of being the most corrupt in the country and demanded answers on who benefitted from the misappropriation of public funds.

The report has highlighted several irregularities in the policy-making and implementation process, including lack of transparency in pricing, violations in the issue and renewal of licenses, and failure to penalize violators. It also pointed out the lack of labs to test the quality of liquor, putting the health of millions of city residents at risk.

The AAP has dismissed the leaked report, questioning its authenticity, and has denied any wrongdoing on the part of Kejriwal and his Cabinet ministers, including Manish Sisodia and Satyendra Jain. The three were arrested and later granted bail in cases related to money laundering and corruption in connection with the excise policy.

The report also states that the exchequer suffered a loss of Rs 890 crore as the AAP government did not re-tender surrendered retail liquor licenses. It also found that there was a lack of scrutiny of business entities, and instances of related entities holding licenses across the liquor supply chain were noticed. The report also highlighted the enforcement of exclusivity arrangements between zonal licensees and wholesalers, and the surrender of zonal licenses during the extended policy period resulted in a significant loss of revenue. Additionally, important measures such as setting up laboratories for quality assurance and super premium vends were not implemented.

The report further revealed that the government lost an additional Rs 941 crore due to exemptions given to zonal licensees. It also accused the Group of Ministers, headed by Manish Sisodia, of not acting on the recommendations of the expert panel and allowing disqualified entities to bid for licenses.

These findings have added fuel to the already heated political atmosphere in Delhi, where the AAP is seeking to come back to power for the fourth time. The elections for the 70 Assembly seats will be held on February 5, and the results will be declared on February 8. Currently, the AAP holds 62 seats in the House, while the BJP has 8.

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