logo
Maharashtra excise department lapses caused revenue loss of several crore rupees: CAG

Maharashtra excise department lapses caused revenue loss of several crore rupees: CAG

The Hindu19-07-2025
The Comptroller and Auditor General (CAG) of India has pulled up the Maharashtra State excise department for serious lapses in its operations, which have led to a substantial revenue shortfall.
The CAG report pointed out that due to incorrect assessment of licence renewal fees, the State lost ₹20.15 crore in revenue and ₹70.22 crore in interest.
The audit further stated that failure to implement revised rates for supervision fees had caused an additional shortfall of ₹1.20 crore.
According to the report, the then Excise Commissioner exempted excise duty on old stock of beer without obtaining prior approval from the State government.
The report also highlighted that the delayed submission of mild beer samples for chemical analysis had hampered tax recovery to the tune of ₹73.18 crore.
"Under the Bombay Prohibition (Privilege Fee) Rules, 1954, a provision exists to charge fees for changes in partnership. However, no such provision was applicable to significant changes in shareholding of public limited companies, resulting in a loss of ₹26.93 crore to the state," the CAG observed.
The absence of a provision in the Excise Act for declaring production cost also led to a missed opportunity for the government to earn additional revenue, it added.
The audit further revealed that in the case of Canteen Stores Department (CSD), the production cost of 11 products or brands was undervalued, causing a revenue loss of ₹38.34 crore in excise duty.
Additionally, errors in the purchase cost of imported foreign liquor resulted in non-collection of Rs 11.48 crore between August 2018 and March 2022, and ₹2.89 crore between May 2017 and March 2022.
The cumulative effect of these lapses caused a massive revenue loss for the government, raising serious concerns about the functioning of the Excise Department, the CAG stated.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Uttar Pradesh secures ₹12,031 crore under PMAY-Urban 2.0
Uttar Pradesh secures ₹12,031 crore under PMAY-Urban 2.0

Time of India

time32 minutes ago

  • Time of India

Uttar Pradesh secures ₹12,031 crore under PMAY-Urban 2.0

LUCKNOW: In a major push towards ' Housing for All ', the Uttar Pradesh government has secured financial approval of Rs 12,031 crore under the Pradhan Mantri Awas Yojana (Urban) Mission 2.0 to provide pucca houses to the urban poor, according to a statement released on Saturday. Chief Minister Yogi Adityanath has directed officials to ensure transparency and quality in construction, the statement said. Following this, geo-tagging and photographic documentation of each house will be mandatory under PMAY (Urban), enabling real-time monitoring at every stage of construction. All houses will also be equipped with disaster-resilient features to safeguard against earthquakes, floods, and other calamities, making safety an integral component of the scheme, it said. The cost of construction under the scheme is being shared between the Centre and the state government in a 60:40 ratio. Each eligible beneficiary will receive Rs 2.5 lakh in assistance to build a permanent (pucca) house. Launched on September 1, 2024, the PMAY (Urban) Mission 2.0 aims to ensure pucca houses for all families by the set deadline. The scheme is being closely monitored by officials at both the state and district levels to guarantee timely and quality construction. The initiative not only provides social security to the urban poor but also promotes integrated urban development across Uttar Pradesh, the statement added.

ED probes Anil's RHFL for writing off Rs 7k cr loans to group firms
ED probes Anil's RHFL for writing off Rs 7k cr loans to group firms

Time of India

time42 minutes ago

  • Time of India

ED probes Anil's RHFL for writing off Rs 7k cr loans to group firms

NEW DELHI: As the ED sifts through voluminous documents and digital records seized from Anil Ambani 's Reliance group entities during searches, which began on July 24 and concluded on Sunday, the agency, in particular, is looking at alleged diversion of Rs 12,000 crore loans by Reliance Home Finance Ltd (RHFL) to various related entities. ED is being assisted in its task by National Financial Reporting Authority, CBI, Security and Exchange Board of India (Sebi) and National Housing Bank, since it involves misappropriation of huge public funds. At least a dozen related entities of the group are currently undergoing insolvency proceedings, which means massive haircuts for banks. Sources said 22 individuals, who are key management personnel and associates of Ambani, have come under the radar of the agency and are being investigated, besides the 60 companies that were covered during the searches lasting over 72 hours. A Sebi investigation report (shared with ED) has highlighted alleged laundering of funds by RHFL, which had written off around Rs 7,000 crore out of the Rs 12,000 crore of loans it had extended to various entities linked to the Anil Ambani group. Ambani is already under investigation for his group entity RHFL availing funds of Rs 2,965 crore from Yes Bank by allegedly paying bribes to its former CEO Rana Kapoor through his wife Bindu Kapoor and her companies. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do You Speak English? You May Be Able To Work a USA Job From Home in Bangladesh US Jobs | Search ads Undo Rs 1,353 crore of the Rs 2,965 crore received from Yes Bank has turned into NPA. A forensic audit, commissioned by the bank, has also concluded diversion of this amount to related companies. Reliance Power and Reliance Infrastructure, in identical statements, said, "The company and all its officials have fully cooperated and will continue to cooperate with the authority". On the alleged diversion of Rs 12,000 crore by RHFL to related entities, a company official said, "The account of RHFL has been fully resolved with change in management pursuant to the judgment of SC in 2023. ..Allegations of other irregularities are sub-judice and as a matter of fact, the Sebi order has been challenged before SAT (Securities Appellate Tribunal) since 2024". "Sebi vide its order dated Aug 22, 2024, has found that RHFL has engaged in a fraudulent scheme to divert funds for the benefit of Ambani and his group companies," a source aware of the probe said. ED is probing related party transactions, in which it was found that Reliance Infrastructure had received funds from Crest Logistics and Engineers Pvt Ltd, which in turn had received funds from at least four entities - RPL Star Power Pvt Ltd, RPL Solar Power Pvt Ltd, Species Trade and Commerce Pvt Ltd and Worldcom Solutions Ltd - all of them allegedly linked to the Anil Ambani group. According to the Sebi investigation report, the forensic audit of RHFL found that "loans of more than Rs 12,000 crore have been extended to various entities which are linked to the Anil Ambani group. These companies had a common registered address, email ID/domain, address and directors". The Sebi report further revealed that as on Sept 30, 2021, Rs 6,931 crore had been declared as NPA/written off by RHFL out of loans extended to linked/associated entities of the group.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store