CAG flags irregularities in UP excise department

The Comptroller and Auditor General (CAG) has detected several lapses resulting in losses worth Rs. 24,805 crores in the UP Excise Department during the 2008-2018 period.

The CAG report tabled in the UP Legislative Assembly on Friday on pricing of production and sale of liquor (state excise department) for the year ended March 2018, points out at total financial implication of Rs. 24,805 crores.

Among the major findings, the report points out are irregular creation of special zones (Meerut) as per the excise policy 2009-2010 to check smuggling of liquor into the state from neighbouring states which despite not having the desired impact continued over next nine years.

The report said licences for retail shops were renewed continuously for nine years (2009-2018) without resorting to any form of open tendering on an annual basis eliminating any possibility of competition in production and sale of liquor at reasonable rates.

It also pointed out that state excise policies (2008- 2018) allowed unchecked discretion to distilleries/breweries in determining ex-distillery and ex-brewery price of the IMFL and beer, allowing them to inflate ex-distillery and ex-brewery price of both identical and similar brands of liquor (IMFL and beer) much higher (46 and 135 per cent) as compared to neighbouring states leading to accrual of undue gains to them to the tune of Rs.5,525 crores during 2008-18 at the cost of state exchequer/consumers.

Undue advantage also accrued to wholesalers and