Corruption in the Bihar Liquor Policy (2015-2017)
In December 2015 the Bihar government notified a "New Excise Policy (NEP) 2015" which planned a phased prohibition: ban on country‑(spiced) liquor from 1 April 2016 and later full prohibition including IMFL.
There were audit findings by the Comptroller and Auditor General of India (CAG) pointing to irregularities in the excise department: e.g. short realisation of licence fees, non‑compliance of rules for excise shops, possible revenue loss.
Critics highlight a "parallel economy" emerging under prohibition: illegal liquor supply, involvement of mafia/police, confiscated liquor being resold, etc.
One audit report noted that the company responsible for retail IMFL shops under the policy invited tenders in Dec 2015, awarded work in Feb 2016, then the policy banned IMFL sales from 5 April 2016 - leading to termination of contracts and possible loss.
The policy also had social aims (reducing alcohol consumption, domestic violence etc) but the enforcement and implementation raised transparency and governance concerns.
In sum: The policy shift toward prohibition created large disruptions in the excise/licensing ecosystem. Because revenue flows and licensing practices changed rapidly, many audits flagged rule‑violations, short‑levies, weak monitoring, and the rise of illicit supply as indicators of corruption risk.
There were audit findings by the Comptroller and Auditor General of India (CAG) pointing to irregularities in the excise department: e.g. short realisation of licence fees, non‑compliance of rules for excise shops, possible revenue loss.
Critics highlight a "parallel economy" emerging under prohibition: illegal liquor supply, involvement of mafia/police, confiscated liquor being resold, etc.
One audit report noted that the company responsible for retail IMFL shops under the policy invited tenders in Dec 2015, awarded work in Feb 2016, then the policy banned IMFL sales from 5 April 2016 - leading to termination of contracts and possible loss.
The policy also had social aims (reducing alcohol consumption, domestic violence etc) but the enforcement and implementation raised transparency and governance concerns.
In sum: The policy shift toward prohibition created large disruptions in the excise/licensing ecosystem. Because revenue flows and licensing practices changed rapidly, many audits flagged rule‑violations, short‑levies, weak monitoring, and the rise of illicit supply as indicators of corruption risk.
Sources
Economic Times
Bihar hooch tragedy: Liquor ban is the biggest corruption of Nitish Kumar's rule, says Tejashwi Yadav