Liquor suppliers in C'garh got Rs 113 crore undue benefit: CAG

The rates fixed by Chhattisgarh State Beverages Corporation Ltd (CSBCL) for the purchase of foreign liquor were unreasonably high, which resulted in undue benefit of Rs 112.87 crore to the liquor suppliers in the last two years, the CAG said in its report.
The Comptroller and Auditor General (CAG) of India report on public sector undertakings fortheyear ended March 31, 2016, wastabledby Chief Minister Raman Singh in the state Legislative Assembly yesterday.
"Chhattisgarh State Beverage Corporation Limited finalised the purchase price of foreign liquor for the years 2014-15 and 2015-16 at higher rates in violation of the terms and conditions of tender as well as directives of the Board of Directors, which resulted in undue benefit of Rs 112.87 crore to the suppliers of foreign liquor," state Accountant General (Audit) Bijay Kumar Mohanty told reporters citing the report.

"Had the CSBCL properly assessed the reasonability of purchase price in 2014-15 itself and taken action against the suppliers for reduction of purchase price at par with the adjoining states, this irregularity could have been avoided in the following year, i.E. 2015-16," the report said.
Thus, during 2014-15 and 2015-16, it extended an undue benefit ofRs 112.87 crore to the suppliers of IMFL by accepting higher purchase price, it said.
"The Secretary, Department of Commercial Tax and Registration, Government of Chhattisgarh, during a discussion (in December 2016) on the issue accepted the audit observation and stated that show-cause notices were issued on November 24, 2016 to all the suppliers for recovery ofRs 112.87 crore," it said.

The Secretary further stated that action would be taken against these suppliers after verification of their responses, the report said.