Rs 2,026 crore revenue loss: Delhi Assembly seeks action report on excise irregularities

New Delhi: The Delhi Assembly has tightened its scrutiny of the Excise Department following serious irregularities flagged in a CAG audit, with the House directing the government to submit an Action Taken Report by January 31, 2027. The directive comes after the Assembly approved recommendations made by the Public Accounts Committee (PAC), calling for urgent corrective measures to address alleged corruption, weak oversight, and policy failures in liquor regulation and supply.

The PAC findings point to significant financial losses, estimating that the government suffered a revenue hit of nearly ₹2,026.91 crore due to lapses such as non-compliance with rules, lack of transparency in licence allocation, and flawed pricing mechanisms. The report notes that these systemic gaps converted potential public revenue into losses, raising concerns over governance and accountability.

One of the most critical failures highlighted is the breakdown of the Excise Supply Chain Information Management System, which was intended to monitor liquor movement and sales. The system, reliant on barcode-based tracking, failed to deliver due to widespread instances of unregistered barcodes, making it difficult to track stock and sales accurately. At the same time, the Excise Intelligence Branch, tasked with curbing illegal trade, remained largely ineffective. Although enforcement agencies recorded seizures, the absence of meaningful data analysis and coordination limited efforts to control smuggling, particularly from neighbouring states.