Archive · 2 Aug 2025
CAG Uncovers ₹358 Crore in Improper Liquor Refunds in MP
Imagine the government gives money back to liquor companies, called refunds.
Auditors found that the government gave back ₹358 crore in refunds to liquor companies without the right paperwork.
The person in charge didn't have proof for these refunds.
The auditors also found problems with bank guarantees, which are like promises of money, in a different area.
They want to know why the paperwork was missing and who was involved.
CAG detected ₹358 crore in irregular EDP refunds to distilleries.
Refunds were made from May 2019 to December 2020.
The Excise Commissioner lacked documentation to justify the refunds.
Bank guarantees worth ₹18.39 crore in Narmadapuram were uncertified.
CAG recommended an inquiry into the fake bank guarantee case.
- Who
- CAG, Excise Commissioner, Liquor manufacturers and distilleries, License holders
- What
- Irregular EDP refunds and uncertified bank guarantees.
- When
- May 2019 to December 2020 (EDP refunds)
- Where
- Madhya Pradesh, India
- Why
- To ensure proper financial practices and accountability.
- Total Irregular Refunds
- ₹358 crore
- Refund Period
- May 2019 - December 2020
- Uncertified Bank Guarantees
- ₹18.39 crore
- Location of Bank Guarantee Issue
- Narmadapuram
