SHILLONG: A storm is brewing within Meghalaya’s Excise sector as the government’s decision to outsource key revenue monitoring functions to a private firm from Hyderabad has triggered widespread concern among licensed retailers and bonded warehouse owners.
The move—centred on the introduction of the Integrated Excise Management System (IEMS) and a Bar/QR Code tracking mechanism—has been slammed by stakeholders as a threat to the department’s transparency and the state’s financial interests.
At the heart of the dispute is M/s C-Tel Infosystems Pvt. Ltd., a Hyderabad-based company awarded the contract for implementing the IEMS cum Track & Trace Solution.
Stakeholders Question Outsourcing and Data Security
According to Samborlang Diengdoh, one of the prominent stakeholders and RTI applicants, the outsourcing “sidelines capable local officers” and exposes sensitive IMFL (Indian-Made Foreign Liquor) revenue data to an external private entity.
“This decision compromises the integrity of the Excise Department and risks the leakage of critical financial information outside the state,” Diengdoh asserted.
RTI Findings Expose Contract Details and Pricing
Documents obtained through an RTI application filed by Diengdoh confirmed the award of the contract and revealed the negotiated pricing terms.
A letter dated October 22, 2025, issued by the PIO and Deputy Commissioner of Excise, disclosed that the government finalized the deal after price revisions.
M/s C-Tel Infosystems agreed to a revised basic price of ₹2.40 per bottle (excluding GST), reduced from the original quote of ₹2.45.
Retailers, however, allege that the ₹2.40 per bottle charge generates no direct revenue for the state. Instead, they claim the new system effectively allows the private firm to collect payments from them—potentially amounting to “hundreds of crores annually” siphoned away from the state’s coffers.
Retailers Hit by Profit Margin Reduction
Further fuelling their frustration, stakeholders pointed to a recent amendment to the Meghalaya Excise Rules, which they say compounds their losses.
An enclosed Government Notification revealed that Rule 372(1)(b) has been amended to fix a uniform 15% maximum profit margin on the retail sale of all IMFL, wine, and beer categories.
Retailers argue that this cut in profit margins coincides suspiciously with the rollout of the new outsourced system—suggesting it was made to offset the firm’s service cost rather than protect local business interests.
‘Replica’ Policy Criticised
Licensees have dismissed the new IEMS and its QR/Bar Code system as a “replica” of previous tracking initiatives, including the Central Bonded Warehouse and hologram pasting measures introduced just four years ago.
They contend that the new system offers little innovation while imposing additional financial burdens.
The Excise Department, in its RTI reply, maintained that the IEMS “is anticipated to effectively monitor the movement of liquor across the supply chain—from the distillery and bottling plant to wholesalers and retailers.”
Lack of Consultation Fuels Distrust
The department confirmed that a Notice Inviting Expression of Interest (EOI) was issued during the tendering process.
However, when asked whether stakeholders such as bonded warehouse owners and retailers were consulted before the decision, the department’s written response was a terse “Not Applicable.”
This revelation has angered licensees, who say the policy was introduced without adequate stakeholder dialogue despite their crucial role in contributing to the state’s excise revenue.
Growing Rift Over Revenue Control
The controversy underscores a widening rift between the Excise Department and its key revenue contributors. Retailers warn that allowing a private company to manage sensitive data and revenue tracking undermines state control and transparency.
As the dispute intensifies, the government faces mounting pressure to review its outsourcing decision and re-engage with stakeholders to protect both state revenue and public trust in the Excise Department’s operations.
