Foreign liquor rates in Chhattisgarh unreasonably high: CAG report

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 for the year ended March 31, 2016, was tabled by 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.

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“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 of?Rs 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 of?Rs 112.87 crore,” it said.

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