AMARAVATI: The Comptroller and Auditor General of India (CAG) exposed irregularities in the Excise Department during the TDP's reign. In an audit report by the CAG, pointed out defective tax collection and irregularities conducted by the TDP government while registering excise cases. The report also showed that the previous government was acting in favour of the liquor syndicates, and causing huge losses to government revenue.

The State Excise Department had 103 offices to be audited and during the financial year 2017–18, the CAG inspected 14 offices. It was noticed that government revenue of Rs 6.71 crore was found to have been not collected in the 41 cases registered during that period. Interestingly the Excise Department also acknowledged the mistakes pointed out by the CAG.

Many villages in the state were merged into the nearest city administration or municipality. With that, the liquor shops there were to be charged additional license fees, but the Excise Department ignored it. The State government lost revenues worth Rs 2.01 Crore which were to be claimed from villages merged in the Samarlakota Municipality, Kakinada and Rajahmundry Municiapal Corporations. The government also lost revenue worth Rs 3.16 crore in fees to be levied for running permit rooms, which were not reported by these liquor syndicates.

Apart from this, the bars which were running outside the permitted area and extended beyond the Blueprint were ignored and charges were not levied on them. In Kakinada, Ongole and Rajahmundry, 13 bar licensees were not charged an additional fee of Rs 94.11 lakh. The government lost Rs 28.89 lakh in revenue as the Toddy trees were undersold at lesser prices. The CAG also pointed out that the Toddy trees were rented at very low prices in Kakinada, Eluru, Rajahmundry and Vizianagaram.