In a damning audit report, the Comptroller and Auditor General (CAG) of India has exposed massive irregularities and mismanagement within the Maharashtra State Excise Department, resulting in a staggering revenue loss of over ₹245 crore.
The CAG revealed that due to incorrect assessments during licence renewal, the state exchequer lost ₹20.15 crore in fees and an additional ₹70.22 crore in interest. The department’s failure to implement revised supervision fee rates further cost the government ₹1.20 crore.
One of the most glaring lapses noted in the audit was the excise commissioner’s unauthorized decision to exempt old stock of beer from duty—without prior approval from the state government—leading to significant losses. The report also criticized delays in submitting mild beer samples for chemical analysis, which hindered tax recovery of ₹73.18 crore.
The CAG flagged a loophole in the Bombay Prohibition (Privilege Fee) Rules, 1954, which allowed major shareholding changes in public limited companies without charging fees. This regulatory gap resulted in another ₹26.93 crore slipping through the state’s hands.
Further scrutiny uncovered undervaluation in production costs for 11 liquor products supplied through the Canteen Stores Department (CSD), leading to an excise duty shortfall of ₹38.34 crore. Additionally, pricing errors in imported foreign liquor between 2017 and 2022 led to non-collection of ₹14.37 crore.
The audit slammed the department for systemic failures, underscoring the urgent need for reform to plug revenue leakages and restore accountability in liquor regulation.
