NDPL smuggling causes Rs 300 crore revenue loss to Telangana exchequer

HYDERABAD: A thriving underground network of non-duty paid liquor (NDPL) smugglers is working in tandem with private event organisers, causing an estimated ₹300 crore annual loss to the state exchequer.

A recent crackdown by the excise department has unravelled the scale, sophistication, and spread of this illegal trade, particularly within the GHMC limits.In the past three weeks alone, excise officials have stumbled upon multiple NDPL smuggling routes, primarily from Haryana, Goa, and Karnataka, where liquor taxes are significantly lower than in Telangana. Liquor meant exclusively for defence canteens and even customs duty-free bottles meant for inbound air passengers are being illegally diverted to high-paying clientele, often through private parties and event circuits in Hyderabad.On June 21, Patancheru excise officials intercepted a Mahindra XUV with a UP registration plate and seized 408 bottles of premium whisky brands-Chivas Regal, Black Label, Red Label, and Jameson. The vehicle was operated by two Hyderabad-based men, A Tikiya Naik and S Naveen Kumar, who admitted to sourcing the liquor from a wholesale store in Faridabad, Haryana, for ₹5 lakh.

"The liquor was being brought in SUVs purchased cheaply in the national capital region.

The same vehicle, once used for smuggling, is later sold for profit in Hyderabad. With tax differences, liquor worth ₹5 lakh in Haryana fetches ₹15 lakh here. From a single run, they make over ₹10 lakh," said excise inspector Parameshwar Goud.On June 17, two ex-servicemen, Purushotham from Yapral and Siddaiah from Kowkoor, were caught at Malkajgiri with 37 bottles worth ₹75,000 sourced from a Ballari (Karnataka) defence canteen.

A week earlier, 115 bottles of defence quota liquor worth ₹2.3 lakh were seized in Serilingampally. In most cases, the liquor was purchased in Karnataka, where defence canteen prices are much lower. "For instance, a Teacher's whisky bottle costs ₹800 in a Karnataka canteen, ₹1,600 in Telangana's defence outlet, and ₹2,200 in a retail store.

The margins make smuggling highly profitable," explained an excise official.

Smugglers are also ferrying high-end foreign liquor like Royal Salute, which costs ₹14,000 in Haryana but sells for ₹26,000 in Telangana, sometimes via trains or courier services.In Dec 2024, the excise department busted a customs duty-free liquor racket involving a police constable at RGIA, a home guard, two techies and others. The gang allegedly procured 41 bottles worth ₹15 lakh-mostly Royal Salute and Gold Label-using the passport and ticket copies of Gulf returnees in collusion with a duty-free shop worker at Hyderabad airport.