Govt recovers Rs 83 lakh from Chadha group

MOGA: Almost a decade after the Chadha group, a top name in the liquor trade, was accused of selling country-made liquor in the district without paying taxes, the Excise and Taxation Department has recovered the pending excise duty and penalty of Rs 83 lakh, a senior officer of the department said.

Kulwinder Sandhu

Tribune News Service

Moga, September 9

Almost a decade after the Chadha group, a top name in the liquor trade, was accused of selling country-made liquor in the district without paying taxes, the Excise and Taxation Department has recovered the pending excise duty and penalty of Rs 83 lakh, a senior officer of the department said.

The family of liquor baron Ponty Chadha, who was killed in a shootout in New Delhi in 2012, has been running the Chadha group of companies, engaged in liquor and real-estate business, besides owning a few multiplexes.

The officer said on the condition of anonymity that “illegal” liquor was found in the L-13 storehouse of the group here during the 2009-10 fiscal. During checking, it was found that excise duty was not paid by them on a large portion of the stocks.

The officer said the liquor was smuggled out of AB Grains Spirits Private Limited, Batala, in connivance with excise officials and kept in the storehouse here for illegal sale.

When the excise officials conducted a verification, the stocks were found in excess of the quantity on which excise duty had been paid to the state government.

The Chadha group still has a major stake in the liquor business in Punjab, Haryana, Uttar Pradesh and other states.

A couple of months ago, the Competition Commission of India had ordered a probe against Chadha Holdings and its four group entities, the sister concerns of the Chadha group, for alleged “abuse of a dominant position” with respect to procurement of country liquor in Uttar Pradesh.

In January 2018, the UP Government had slapped a fine of Rs 53 crore on Accurate Foods and Beverages Private Ltd, another company owned by the group.

Bottles kept in storehouse for ‘illegal’ sale

‘Illegal’ liquor was found in the L-13 storehouse of the Chadha group here during the 2009-10 fiscal
During checking, it was found that excise duty was not paid by them on a large portion of the stocks
The officer said the liquor was smuggled out of AB Grains Spirits Private Limited, Batala, in connivance with excise officials and kept in the storehouse here for illegal sale
In January 2018, the UP Government had slapped a fine of Rs 53 crore on Accurate Foods and Beverages Private Ltd, another company owned by the group