Bhopal (Madhya Pradesh): A major irregularity has come to light in the ex-distillery price (EDP) given by the government to liquor manufacturers and distilleries.
CAG has detected appropriation of Rs 358 crore in EDP from May 2019 to December 2020. Liquor manufacturers and distilleries transport liquor to warehouses.
The owners of liquor outlets collect it from the warehouses after making all required payments to the government. Liquor manufacturers and distilleries claim the EDP refunds from the government.
On the basis of documents, the government refunds it. CAG has come across the fact that the excise commissioner did not receive any claim made by the liquor manufacturers and distilleries.
The excise commissioner could not say anything about how and why he made the refund. There were no documents to justify whether the amount given in the form of EDP was provided by the retail licence holders.
CAG also objected to the refund made without the real claim by the liquor manufacturers and distilleries. According to CAG, all documents should have been available to justify the payments. The payments should be matched with the treasury records.
Fake bank guarantees in Narmadapuram
The CAG report has also highlighted a bank guarantee case in Narmadapuram. Bank guarantees worth Rs 18.39 crore, issued in the name of 19 licence holders, were not certified.
The bank guarantees were issued in the name of some persons, but others applied for contracts. The excise department did not certify the bank guarantees. The CAG recommended an inquiry into the case.
The CAG also asked the government to probe the role of licence holders and bank officials in the fake bank guarantee case.
