• Sunday, 06th October 2024

Dr. Purandeswari Ask for IT Investigation into Massive Liquor Scam in Andhra Pradesh



Dr. Purandeswari, State President of the BJP in Andhra Pradesh writes letter to draw attention to the extensive corruption plaguing Andhra Pradesh's liquor industry, amounting to thousands of crores in revenue loss annually. 

This issue not only costs countless lives due to the consumption of substandard alcohol but also involves significant corruption, with vast sums of money funnelled into the pockets of the Chief Minister of Andhra Pradesh and his associates, simultaneously depriving the central government of legitimate income.

Historically, liquor shops were allocated through a competitive auction process, but now they are entirely controlled by the state government. The Andhra Pradesh Beverages Corporation procures liquor from manufacturers and leases it to these shops.

Shockingly, the liquor manufacturing industry has been largely taken over by high-ranking members of the YSRCP, often through intimidation and coercion. For example, an YSRCP MP who once supplied liquor saw his business disrupted when he resisted turning it over to party leaders. This exemplifies the coercive methods deployed by those in power.


Furthermore, the distillation process is highly questionable. Raw materials for liquor production, such as rectified spirit, are supposed to undergo multiple distillations to remove harmful components.

However, reports indicate that this process is not rigorously followed, allowing harmful ingredients to persist. Consequently, a liter of liquor, which costs around 15 to 20 rupees to manufacture, is sold for prices ranging from 600 to 800 rupees per liter.

Compounding this issue is the fact that over 80% of liquor sales occur in cash rather than through digital payments, highlighting the rampant corruption associated with cash-and-carry transactions. This practice directly contradicts the Government of India's digital transaction policy.

The scale of corruption is staggering. Conservatively estimating that 80 lakh people in Andhra Pradesh consume 200 rupees worth of liquor daily, the annual revenue should be around 57,600 crores.

However, the government reports revenue at approximately 32,000 crores, implying that around 25,000 crores are illicitly siphoned from the system. It is important to note that liquor shops are wholly government-controlled, and this is just a snapshot of a single year's data.

Proceeds from the Andhra Pradesh Beverages Corporation are believed to flow directly into the pockets of influential figures. Distilleries reportedly pay cash commissions to leaders of the ruling party, while raw materials, bottles, caps, and packaging are bought in cash to evade both income tax and GST. Middlemen involved in manufacturing, transportation, storage, and sales profit immensely, with direct links to the highest offices of the state.

Regrettably, the government's brutal enforcement of cash-only transactions leads to price markups in liquor sales. The consequences are dire, as this corruption lines the pockets of the powerful at the expense of the lives of thousands.

During her personal visits to liquor shops, she found that only a minuscule portion of sales were documented through bills, with strong instructions against digital payments. Furthermore, visits to government hospitals revealed that the majority of patients in a ward of 50 were suffering from liquor-related cirrhosis, and one person was dying every week due to the harmful effects of cheap liquor.

The impact on families is immeasurable, particularly when the breadwinners perish. The Chief Minister of Andhra Pradesh and his associates have shattered countless families, having come to power on promises of prohibition but instead doubling the sales of liquor and resorting to future revenue loans.

She earnestly request that you initiate an investigation, specifically an ED/IT inquiry, into these misdeeds and misappropriation. I am confident that a thorough examination of the distilleries and the Andhra Pradesh Beverages Corporation will reveal extensive tax evasion, TDS violations, and GST discrepancies.

Your prompt action is eagerly awaited. 

 

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