Delhi Liquor Barcode Project: CAG Flags ₹24 Crore Undue Benefit to Implementing Agency

Delhi Liquor Barcode Project: The Excise Supply Chain Information Management System is said to have given undue advantages to the implementing agency of ₹24.23 crore, the CAG report noted.

The report titled Performance Audit Report on Regulation and Supply of Liquor in Delhi', tabled before the newly elected Delhi Assembly on Monday, revealed that payments were made for liquor bottles that were not authenticated at the Point Of Sale through barcode.

The report says that the implementing agency enjoyed the benefit during the period from December 2013 to November 2022.

Also Read: Prajakta Koli Sits on Fiancé Vrishank Khanal’s Lap in Dreamy White-Themed Haldi Ceremony – See Pics

In February 2010, the Delhi Cabinet took the decision to implement barcoding of all liquor sold in the city to curb smuggling and ensure traceability.

The ESCIMS project by the agency selected through a bidding process included, "barcoding of all liquors, inventory management, and payment solution for all stakeholders in its scope," stated the report.

Therefore, if it were not authenticated at POS, the IA was not entitled to payments. The audit found that for three years 2013 to 2022, barcode authentication was only ₹65.88 crore while an 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 had 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.

Also Read: Delhi Govt to Table 14 CAG Reports on AAP’s Tenure in Assembly Today

In April 2015, the Excise Department once again sought the Finance Department's opinion, leading to an order for the reconciliation of barcode data. However, "reconciliation was not carried out satisfactorily, but the payments continued", the report said.

According to the report, these payments infringed upon the contractual provisions as payment could only have been made after the relevant Schedule VI of the Master Services Agreement explicitly required that all barcode data must be authenticated, whether by POS sales or damage or expiry.

"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.

The Delhi government justified the payments on grounds of "data captured" in the system, which the CAG rejected as valid.

Also Read: 'T in WTO Stands for Trade, Not Trump': Congress Hits Back at PM Modi on Tariffs