Illegal Discount To Liquor Suppliers Caused Loss Of Rs 64 cr to AP Exchequer: SIT
This caused a loss of revenue to the state exchequer to the tune of Rs 64 crore, the SIT said following its investigations into the Rs 3,500 crore AP liquor scam case.
Vijayawada:The CID’s Special Investigation Team has noticed illegal discounting practices by the AP beverages corporation to suppliers of liquor and beer.
This caused a loss of revenue to the state exchequer to the tune of Rs 64 crore, the SIT said following its investigations into the Rs 3,500 crore AP liquor scam case.
The SIT, in its 305 page remand report submitted to the ACB court after arresting and producing fourth accused Midhun Reddy MP in the case, made the claim.
It stated that APSBCL was supposed to pay the landed cost including basic price and excise duty/countervailing duty to the IMFL/beer suppliers, as per discount policy on a daily basis, but the corporation deviated from this.
The APSBCL used to collect discounts at the time of making payment to the suppliers, on the basic price/landed price in all cases where payment is made within the stipulated time.
As per GO 294 dated 01-10-2020, suppliers were given a chart of payment discount of 3 per cent if payment is made within two days; 2.5 per cent within three to five days; 2 per cent within six to 10 days; 1.5 per cent within 11-15 days; 1 per cent within 16-30 days and 0.5 per cent within 31-45 days.
As per GO No. 62 dated 09-03-2021, then special chief secretary (Rajat Bhargav) issued a uniform cash discount of 1.5% to the suppliers irrespective of payment delay to the supplier.
As per GO No. 414 dated 27-05-2022, a chart of payment discount to suppliers was given with 3% within two days; 2.5% within 3-5 days; 2% within 6-10 days; 1.5% within 11-15 days; 1% within 16-30 days and 0.5% within 31-45 days.
Despite clear guidelines issued in the form of GOs to pay with certain interest for delayed payment to the suppliers, the then APSBCL managing director Vasudeva Reddy, as part of a conspiracy hatched with other accused in the case, had given oral instructions to give payment discount as per the old GO 62 so that 1.5 per cent discount must be given even though the payments were made to the suppliers within five to seven days.
This, in turn, caused considerable loss to the state exchequer, the SIT claimed.
The investigation found out that “the lopsided procedure resulted in additional payment of around `64 crore to the suppliers between June 2022 and March 2024, causing undue pecuniary advantage to the suppliers and wrongful loss to the APSBCL.”
This, it said, amounted to a criminal breach of trust.
“It was found that the payments were made within five days to the distilleries and suppliers to enable them to pay the kickbacks/commissions to the accused/conspirators,” the SIT said.
