Alcohol wholesale vendors presented as retailers? CAG report unveiled ‘negligence’ license by AAP in alleged Delhi Excise Scam

CAG report on Delhi liquor policy was presented in the Delhi Assembly on Tuesday, claiming that the then Deputy Chief Minister and Chief Ministers of Excise Minister Manish Sisodia (GOM) changed the recommendations of the expert panel formed to formulate the policy. ,

Comptroller and Auditor General (CAG) report-‘Demonstration Audit’-14 reports on the regulation and supply of liquor in Delhi is that the Bharatiya Janata Party (BJP) government-led Bharatiya Janata Party (BJP) government planned tables in the coming days, tables in the coming days There is a plan to do in the Legislative Assembly.

The 208-Page CAG report divided into eight chapters, now-scrapped Delhi highlights laps in implementing the excise policy, which eventually caused almost damage 2,002 crore to Delhi government.

GOM, CAG allegations decided against the recommendation of the panel and allowed private players to handle wholesale alcohol operations among other violations.

Expert Committee recommends the government acquisition of government acquisition of wholesale trade of liquor through separate state drinks/wholesale corporations, due to previous examples of dual ownership (wholesale and retail) through respective private institutions and illegal through duplicate barcode The facility of alcohol supply states the potential complexity, potential complexity, report of the wholesaler.

Even in his report, GOM admitted that many wholesale traders were able to obtain retail licenses through proxy ownership and make it possible to indulge in non-duty payment liquor sales.

“Still GOM recommended the issue of L-1 license to only private players. The reason provided in the GOM report for not creating such government-owned wholesale corporations was that an in-depth study and implementation of it would require time and L-1 license will not be provided to private players by such a time. Should, ”read in the report.

L-1 license is given for wholesale supply of Indian liquor.

“It was finally noted from the approved excise policy for the year 2022-23 that the wholesale operation was proposed to be managed by private players, which (Delhi) had assumed the claims made by the government that private wholesale operations only There was an interim remedy, “CAG reads on report page 83.

The expert committee had suggested the retention of collection of excise duty based on the bottle, changing the pricing mechanism. “However, as GOM supported the advance collection of excise duty, as a license fee, which was practically removed for the actual sale of alcohol,” the report states.

Wholesale and retail license criteria

The CAG report states that the relevant provisions in the earlier excise policy specifically stated that any person or his family interested in any distillery or liquor bottle or bottling plant A member of will be given a retail license.

“However, the scope of norms to determine the relatedness in the new policy was thin. As a result of such weakening in the terms of policy, institutions had to license, which had a common interest of equal individuals, ”said this.

The CAG report has cited several examples where evidence of relations between licenses/ general -profit owners was seen.

In such an example, the report stated that the M/S was evidence of a connection between the indosperite, a wholesale license and zonal license holder, and the M/S Khao Gali restaurant, holding two zones. Khao Gali Restaurant is an associate company of M/s Indospirit Distribution Limited, which has a 35 percent stake in M/s Indospirit (wholesale license), reports in the report. In addition, the director of Khao Gali was the director of an affiliated company of Indosperit Distribution Limited, it says.

70% wholesale market with three institutions

In the overall analysis of liquor supply patterns in Delhi, the CAG found that wholesale distribution of liquor was largely (71.70 percent) by three institutions, Indospiter, Bindco and Mahadev liquor. The report stated, “The previous two especially the United Spirits (Diazio), United Bruriies (Henecane) and Pournode supply brands, three of the largest domestic manufacturers of alcohol.”

It was also found that 32 zone holdings (in terms of quantity of per zone) are responsible for 10 zone holdings, 44.79 percent of the sale. In contrast, the lower 10 zones (organized by six commercial institutions) were responsible for only 16.68 percent of the sale, it said.

The CAG report also mentions examples where a particular wholesaler supplied the ‘statistically large ratio’ of his stock to a special zonal license holder, which ‘favorable commercial among these wholesale licensees and concerned zonal license holders Conditions’ and/or or closely exposed the risk of the union.

“In addition, some notable examples have been indicated where a large ratio of the sale of a zonal license was obtained from a special wholesaler. While this may not be an issue in procurement cases from wholesalers supplying popular brands, its brands may be implications such as pushing and limited consumer choice, ”said this.