New Delhi: The Delhi government is actively working on a revamped excise policy designed to maximize state revenue while tightening regulations on the production, distribution, and sale of liquor and other excisable goods. The current policy, which was extended for three months on March 26, will remain in effect until the new framework is rolled out, signaling a cautious transition to avoid disruptions in the liquor trade.
This development comes after years of controversy surrounding the Aam Aadmi Party’s (AAP) 2021 excise policy, which was scrapped amid allegations of financial mismanagement and corruption. The earlier policy, withdrawn in September 2021, triggered a Central Bureau of Investigation (CBI) probe into its formulation and implementation, casting a long shadow over Delhi’s political landscape.
According to sources cited by The Indian Express, officials are focusing on key reforms to address longstanding issues. The new policy aims to boost revenue, crack down on illegal liquor smuggling from neighboring National Capital Region (NCR) areas, and improve the infrastructure and hygiene of liquor retail shops across the city. “The goal is to create a system that’s transparent, efficient, and financially sound,” a government official said, hinting at a significant overhaul to restore public trust and stabilize the state’s excise framework.
A Costly Legacy: The ₹2,002 Crore Loss
The push for a new policy follows sharp criticism of the AAP’s 2021 liquor policy, which a recent Comptroller and Auditor General (CAG) report slammed for causing a staggering ₹2,002 crore revenue loss to the Delhi government. Tabled in the Delhi Assembly on February 25 by the newly formed BJP-led government under Rekha Gupta, the report detailed financial irregularities that have fueled political debates.
In response, the BJP government established a Public Accounts Committee (PAC) to dig deeper into the CAG findings. The committee is tasked with investigating the alleged lapses and recommending accountability measures. Speculation is rife that the PAC may call former Chief Minister Arvind Kejriwal, along with other senior officials from the AAP administration, to explain their roles in the policy’s design and execution. This move underscores the ongoing political tug-of-war between the BJP and AAP, with the liquor policy remaining a contentious issue.
The Liquor Scam: Why Were AAP Leaders Jailed?
The 2021 excise policy didn’t just dent Delhi’s finances—it also landed several AAP leaders in legal trouble. Former Chief Minister Arvind Kejriwal was arrested by the Enforcement Directorate (ED) on March 21, 2024, accused of orchestrating a scheme that allegedly funneled ₹100 crore in kickbacks from liquor wholesalers to the AAP. The ED claims these payments were made in exchange for favorable provisions in the policy, including relaxed licensing rules and other benefits for select businesses.
Kejriwal spent over five months in custody, with a brief release on bail during the Lok Sabha election campaign. He was granted regular bail by the Supreme Court on September 13, 2024. Former Deputy Chief Minister Manish Sisodia, who oversaw the excise department, was also arrested, along with other AAP figures. The ED’s investigation painted a picture of systemic corruption, alleging that the policy was deliberately crafted to benefit private players at the expense of public revenue.
Kejriwal and his party have consistently denied the allegations, framing the arrests as a politically motivated attack by the BJP-led central government. “The ED is being used as a tool to silence opposition voices,” Kejriwal said after his release, accusing the BJP of targeting AAP leaders to weaken their electoral prospects. The AAP argues that the policy was intended to modernize Delhi’s liquor trade and increase transparency, but procedural errors were blown out of proportion to tarnish their image.
What’s Next for Delhi’s Liquor Trade?
As Delhi awaits the new excise policy, stakeholders in the liquor industry—from retailers to wholesalers—are watching closely. The government’s focus on curbing illegal liquor inflows from NCR regions like Gurugram and Noida suggests stricter enforcement and possibly higher penalties for violations. Retail shop upgrades could also reshape the consumer experience, addressing complaints about poorly maintained outlets and uneven service quality.
For the average Delhiite, the new policy could mean changes in liquor prices, availability, and even the shopping experience at local stores. On the revenue front, the government is banking on a robust framework to recover losses and fund public welfare schemes, a key priority amid Delhi’s growing urban demands.
The political stakes are equally high. With the PAC probe looming, the BJP is likely to keep the pressure on AAP, using the CAG report to question their governance record. Meanwhile, AAP leaders are doubling down on their narrative of political vendetta, hoping to rally public support ahead of future elections.
As discussions on the new policy progress, Delhi stands at a crossroads. Will the government deliver a system that balances revenue growth with transparency, or will the ghosts of the 2021 policy continue to haunt the capital? For now, all eyes are on the drawing board as officials work to chart a new course for the city’s liquor trade. Stay tuned for updates as this story unfolds.
