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Delhi liquor barcode project: CAG report flags Rs 24 crore undue benefit to implementing agency
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....elhi liquor barcode project: CAG report flags Rs 24 crore undue benefit to implementing agency<BR>PTI News<BR>Dated:- 25-2-2025<BR>PTI<BR>New Delhi, Feb 25 (PTI) A CAG report has flagged financial irregularities in the Excise Supply Chain Information Management System (ESCIMS), stating that an undue benefit of Rs 24.23 crore was given to the implementing agency. Presented in the newly elected De....
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....lhi Assembly on Monday, the Comptroller and Auditor General of India (CAG) 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 (POS). According to the report, the implementing agency (IA) got the benefit during the period from December 2013....
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.... 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 (Excise Department, wholesale licensees and reta....
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....il outlets) 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 Rs 65.88 crore, whereas the actual payment liability created was Rs 90.11 crore. "The difference amounting to Rs 24.23 crore (excluding se....
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....rvice tax/GST) 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 Departmen....
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....t which approved (May 2014) 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 vi....
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....olated 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 D....
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....elhi government defended the payments, arguing that they were based on "data captured" in the system, the CAG rejected this reasoning. PTI MHS MHS KVK KVK<BR> News - Press release - PIB....