‘Faulty’ collection of liquor licence fee results in loss

According to the Comptroller and Auditor General of India (CAG) report, which was tabled in the Parliament recently and is available with DT Next, there were discrepancies in non-payment of brand renewal and label approval fees that resulted in further loss.

During test check 2017-18 of records in the office of Commissioner of Prohibition and Excise, Chennai, it was noticed that during issue and renewal of 13 FL2 licences during 2014-15 to 2017-18, privilege fee of Rs 6 lakh was collected, despite the licensees being located within Chennai City limits. “This resulted in short realisation of revenue of Rs 52 lakh,”it said.

FL2 licences, valid for one year, are required for non-proprietary bars and pubs to supply liquor to the public. The annual privilege fee for the licence is Rs 10 lakh for those situated in Chennai city and Rs 6 lakh for those elsewhere.

A senior official from the Excise Department here said the issue of collection of privilege fee either on the basis of Revenue Districts or taking into account the Corporation limits was taken up with the authorities and a clarification in this regard was awaited.

On non-payment of brand renewal fee and label approval fee, the report said three licensees neither renewed the licences for 11 brands nor did they submit proposals for deletion of the brands.

“The brand renewal fee of Rs 22 lakh and label fee of Rs 1.45 lakh was not collected from the licensees since 2013,” the report added. Though the CAG had reported the discrepancies to the State government, a reply is still yet to come.