Thiruvananthapuram: It is estimated the Kerala State Beverages Corporation (BEVCO) lost Rs 2,000 crore in the last 10 years as a section of its officials waived sales commission to select liquor suppliers.
The BEVCO used to charge a very nominal commission from 15 companies, which used to hold sway in the supply of liquor in Kerala. The corrupt officials of the BEVCO were said to be behind such collusion with the liquor companies, resulting in a huge loss for the BEVCO, which is the state monopoly in liquor sales.
Though the BEVCO could have collected up to 21 per cent commission from these companies on yearly basis, it had only collected seven per cent commission.
The commission in the name of cash discount was charged by the BEVCO for bringing liquor bottles to its outlets from the warehouses.
When the new liquor companies were charged 21 per cent commission, 15 companies, which held almost 90 per cent monopoly over the brands sold through the BEVCO outlets in Kerala, were charged only seven per cent commission.
The total loss for the corporation last year was pegged at Rs 209 crore after liquor sales took a dip due to the COVID-19 crisis. An amount 10 times this figure was lost due to the largesse on liquor suppliers!
NEW SLAB SYSTEM INTRODUCED
Now, the BEVCO has decided to introduce a slab system for charging commission from the liquor companies. The new slab system is purely based on the sales of liquor.
The BEVCO decided to implement the slab system for commission for sales after it was found that the corporation had lost crores of rupees due to the connivance between the liquor companies and a section of the BEVCO officials.
As per the new slab system, the company has to give a 10 per cent commission for yearly sales of up to 10,000 cases through BEVCO outlets. If it is more than 10,000 cases, the commission to be paid will be 20 per cent. The BEVCO will ensure the sale of the entire stock of a company if it gives a 25 per cent commission.
The proposal presented by the CMD was approved by the BEVCO director board meeting held on Friday.
BEVCO PLUGGING LOOPHOLES
It was also found that even though suppliers of new brands made enough stock available at the warehouses, a section of the BEVCO officials gave them a raw deal by not displaying these brands at the outlets.
But, the BEVCO raked in additional revenue of Rs 4.2 crore after it started encouraging new companies last month by charging them a 21 per cent commission.
The total turnover of the BEVCO last year was Rs 13,212 crore. Though the State Government got a huge amount as tax from the sales of liquor, the BEVCO registered a loss of Rs 250 crore.
Now, as per the strict instructions by Excise Minister MV Govindan, the BEVCO is plugging sources of revenue loss one by one and thereby trying to bring back the corporation its profit-making tag at any cost.
