Liquor maker Radico Khaitan evaded Rs 1,078 crore tax: CAG

NEW DELHI: In a shocking revelation, it has come to notice that liquor manufacturing company Radico Khaitan has evaded the tax of Rs 1,078 crore, including interest of Rs 482 crore, during the period of 2013-14 to 2019-20.

In its audit report, the Comptroller and Auditor General (CAG) of India has stated that the tax evasion to the tune of 1078.09 crore by Radico Khaitan Limited, Rampur was found during the examination of records of consumption figures of molasses, grain and barley malt and income tax returns of the assessee.

After comparing the consumption figures of molasses, grain and barley malt submitted by the assessee through statutory returns to the income tax department with the respective quantities depicted in the records of the Assistant Excise Commissioner (AEC), Lucknow, Radico Khaitan Limited, Rampur, the CAG noticed variations in the quantities disclosed in the records/returns submitted to the income tax department with those available in the Lucknow-based excise department of Uttar Pradesh.

The variations found in the consumed material indicate that the assessee had understated the consumption of inputs items in excise records involving excise revenue of Rs 595.75 crore on which interest of Rs 482.34 crore was leviable, the CAG said in its report no 4 of the year 2022 of Uttar Pradesh.

As per the findings of the CAG, molasses, grains and malt used as input material are fermented and distilled to obtain wash/spirit as an intermediate product, which is redistilled, compounded, blended, processed and diluted to produce final products like liquors and other intoxicants.

The CAG’s audit team examined the records maintained in office of the assistant excise commissioner and Radico Khaitan Limited, Rampur for the period from 2013-14 to 2019-20 pertaining to various materials such as molasses, grain and barley malt used for manufacture of liquor.