Audit Reveals Rs 9.71 Crore Liquor Pilferage in Himachal Pradesh

Suspected pilferage of liquor valued at Rs 9.71 crore has been identified in four districts of Himachal Pradesh for the financial year 2021–22. This alarming revelation comes from an audit conducted by the Comptroller and Auditor General of India, which highlighted significant discrepancies between the quantities of liquor sold by wholesalers and those recorded as lifted by retailers. The report was presented to the Vidhan Sabha last week.

The audit focused on the offices of the Deputy Excise Commissioners in Shimla, Una, Baddi (Solan), and Nurpur (Kangra). It uncovered mismatches in all categories of liquor, including Indian Made Foreign Liquor (IMFL), Country Liquor (CL), and beer. Specifically, the audit found that retailers lifted 54.31 lakh proof litres of IMFL, while wholesalers had sold 55.57 lakh proof litres. Similarly, retailers lifted 71.17 lakh proof litres of CL against wholesale sales of 72.54 lakh proof litres, and 44 lakh bulk litres of beer compared to 45.15 lakh bulk litres sold by wholesalers.

The discrepancies resulted in a shortfall of 1.26 lakh proof litres of IMFL, 1.38 lakh proof litres of CL, and 1.16 lakh bulk litres of beer, which has been classified as suspected pilferage. The lack of a cross-verification mechanism to reconcile wholesaler dispatches with retail receipts has raised concerns about the diversion of liquor and potential revenue loss for the state.

According to the excise policy for that year, retailers were required to obtain CL solely through designated L-13 wholesale vendors, while IMFL and beer were to be supplied by L-1 wholesale licensees. Additionally, retailers were mandated to pay the applicable license fee before acquiring excise passes for lifting stock. Despite these regulations, the audit indicated that the excise department failed to implement a consolidated system to compare wholesale transactions with retail lifting.

In response to the findings, Deputy Excise Commissioners informed auditors between September 2021 and February 2022 that they would undertake reconciliation of the figures. Subsequently, a communication in March 2023 revealed that Rs 15.38 lakh had been recovered in two districts. However, the complete reconciliation and further actions are still pending.

The audit findings were submitted to the state government in December 2022, yet no response had been received as of January 2025. The report strongly recommends that the excise department establish a robust mechanism for real-time verification of quantities sold by wholesalers and lifted by retailers. Such measures are crucial to prevent pilferage and ensure the safeguarding of government revenue, according to the audit’s conclusions.