Delhi liquor barcode project: CAG report flags ₹24 crore undue benefit to implementing agency
Delhi liquor barcode project: CAG report flags ₹24 crore undue benefit to implementing agency
New Delhi, A CAG report has flagged financial irregularities in the Excise Supply Chain Information Management System , stating that an undue benefit of ₹24.23 crore was given to the implementing agency.
Presented in the newly elected Delhi Assembly on Monday, the Comptroller and Auditor General of India report 'Performance Audit Report on Regulation and Supply of Liquor in Delhi' revealed that payments were made for liquor bottles that were not authenticated through barcode scanning at the Point of Sale .
According to the report, the implementing agency got the benefit during the period from December 2013 to November 2022.
In February 2010, the Delhi Cabinet decided that barcoding would be introduced for all liquor sold in the city to curb smuggling and ensure traceability.
The ESCIMS project, implemented through an IA selected via a bidding process, covered "barcoding of all liquor, inventory management and payment solution for all stakeholders in its scope," the report stated.
As per the contract, the IA was entitled to payments only for barcodes authenticated at POS during sales. However, the audit found that between December 2013 and November 2022, barcode authentication amounted to ₹65.88 crore, whereas the actual payment liability created was ₹90.11 crore.
"The difference amounting to ₹24.23 crore was considered for payment, for bottles considered as sold through stock-take-sold exercise, i.e., without actual authentication at POS," the report highlighted.
The CAG observed that despite poor barcode scanning, a Departmental Committee recommended ad-hoc payments to the IA for the initial three months, including unverified stock.
"The matter was referred to Finance Department which approved the payment without addressing the issues raised," the report noted.
In April 2015, the Excise Department sought the Finance Department’s opinion again, leading to an order for reconciliation of barcode data. However, "reconciliation was not carried out satisfactorily, but the payments continued", the report said.
The report also highlighted that these payments violated contractual terms, as Schedule VI of the Master Services Agreement explicitly required barcode data to be authenticated — either through POS sales, damage, or expiry — before payments could be processed.
"Audit noted that the release of payment to IA for the un-scanned bottles was not as per the terms of the contract which resulted in undue benefit to the IA," it stated.
While the Delhi government defended the payments, arguing that they were based on "data captured" in the system, the CAG rejected this reasoning.
This article was generated from an automated news agency feed without modifications to text.
