MAHARASHTRA EXCISE DEPARTMENT DOCUMENT ANALYSIS

Document Type: Government Resolution (GR) — Reward/Incentive Scheme

Reference Number: GR No. BGT-1016/Pr.Cr.39/RAUSH-1, dated 09 October 2017

Issued By: Government of Maharashtra, Home Department (गृह विभाग)

Effective Date: 09 October 2017 (Date of Government Resolution)

Summary:

This Government Resolution establishes a comprehensive reward/incentive scheme (बक्षीस योजना) for officers, employees, and informers of the Maharashtra State Excise Department who assist in investigating and detecting crimes related to excise laws. The scheme revises and modernizes the previous reward policy dating from 20 May 1976, which had remained unchanged for 40 years. It prescribes the quantum of rewards, the authorities empowered to sanction them, the composition of recommendation committees, eligibility criteria for rewarded work, and the procedure for disbursement of rewards. The scheme applies to violations under the Bombay Prohibition Act 1949, the Drugs and Cosmetics Act 1955, and the Maharashtra Sugarcane Control Act 1956.

KEY PROVISIONS

A. AUTHORITY STRUCTURE — WHO CAN SANCTION REWARDS

Note: For cases under Sl. No. 5, the Divisional Deputy Commissioner shall decide the chairperson of the committee each time. Preference should be given to the senior-most Superintendent of adjacent districts.

B. GENERAL CONDITIONS FOR REWARD APPROVAL

Condition 1: Applicable Laws and Acts

Officers/employees must have taken action under the following laws and rules:

• Bombay Prohibition Act 1949 and Rules made thereunder
• Drugs and Cosmetics Act 1955 and Rules made thereunder
• Maharashtra Sugarcane Control Act 1956 and Rules made thereunder

Condition 2: Eligible Officers/Employees

• Officers/employees from the rank of Junior Constable (जवान संवर्ग) up to Deputy Commissioner (Senior Grade) are eligible for rewards.
• Clerical staff: If they have performed exceptional and high-quality work, they are also eligible for rewards.

Condition 3: Decision-Making Authority and Process

• The authority empowered to sanction rewards shall, based on the recommendation of the respective Reward Recommendation Committee, take a decision on the reward amount for the officer/employee and informer and pass an order accordingly.
• Contents of the Order: The order must include:
  • Name and designation of the officer/employee
  • Brief details of the outstanding/commendable work
  • Value of revenue loss prevented to the State as a result of the action
  • Reward amount being given

Condition 4: Allocation of Reward Among Multiple Officers/Employees

• The reward amount shall be paid to the investigating officer and the officer who filed the charge sheet in the court.

• However: The reward amount for the officer filing the charge sheet in court shall be given only after the court judgment is delivered in favor of the Government.

• Allocation Among Participants: The Reward Recommendation Committee shall consider the performance of:

  • Participating investigating officers/employees
  • Officers/employees filing the charge sheet in court
  • Officers/employees giving evidence in court

  And shall recommend the distribution to the authority empowered to sanction the reward.

Condition 5: Decision Timeline for Distribution

The authority empowered to sanction rewards shall, within one month of receiving the recommendation, decide on the distribution of the reward amount among officers/employees and informers.

Appeal / Dispute Resolution:

If a dispute arises regarding the reward amount given/sanctioned to an officer/employee or informer, the superior reward-sanctioning authority (of the authority who initially sanctioned the reward) shall decide the matter within one month, and that decision shall be binding on all parties.

Condition 6: Lifetime Cap on Individual Rewards

Officers/employees shall be given a maximum of ₹25,00,000 (Twenty-five lakh rupees) as reward during their entire service period.

Exception: This limit may be relaxed by the Government on a case-by-case basis as a special matter. However, once relaxed, the authority sanctioning the reward has final say.

Condition 7: Anonymity of Informers

• When an order sanctioning reward to an informer is issued, the informer's name shall NOT be disclosed.
• The reward shall be stated as "Rewards to Informers" (खबऱ्यांसाठीची रक्कम).
• The amount shall be paid through the officer to whom the informer provided information.
• That officer shall be responsible for disbursing the amount to the informer.

Condition 8: Documentation of Informer's Information

• The officer/employee receiving the informer's details shall maintain a record in writing signed by the informer (without mentioning the informer's name) with the thumb impression of the informer's left hand.
• This record shall be filed in the office of the Divisional Deputy Commissioner / Director (Enforcement & Vigilance) / Superintendent.
• The record shall be countersigned by the office head before filing.

Audit Compliance:

• When audit officers demand these records during audit, the concerned Divisional Deputy Commissioner / Director (Enforcement & Vigilance) / Superintendent shall produce them mandatorily.

Condition 9: Accuracy of Informer's Information

• If an informer provides completely accurate information, the maximum reward amount shall be given.
• If the informer's information is insufficient, the authority sanctioning the reward, based on the recommendation of the Reward Recommendation Committee, shall decide the appropriate reward amount.

Condition 10: Payment Method

• Rewards to officers/employees shall be credited directly to their bank account via RTGS / NEFT in their name.
• For informers: They shall be given the reward either via RTGS / NEFT (at their choice) or in cash.

Condition 11: Criminal Disqualification

• If any person (informer or otherwise) has been convicted as a criminal under any law enforced by this Department or any other Department, no reward shall be given to that person.

C. PERFORMANCE CRITERIA FOR EXCISE DEPARTMENT OFFICERS/EMPLOYEES TO BE DEEMED REWARD-WORTHY

An officer/employee shall be deemed eligible for a reward if they have:

1. Demonstrated exceptional courage, skill, promptness, honesty, and intelligence while performing any of the following actions.

2. The seized goods must be seized from a cognizable offence (i.e., the offence should ideally be bailable; however, rewards may be given in non-bailable offences if the performance is exceptionally excellent).

Specific Performance Criteria (Case-by-case basis):

The work shall be considered reward-worthy if any of the following circumstances exist:

1. Counterfeit liquor seized — The seized liquor must be detected to be counterfeit in manufacture.

2. Liquor manufactured without excise duty — Liquor manufactured in a distillery without payment of excise duty has been seized.

3. Counterfeit / Duty-Free Scotch seized — Fake or duty-free scotch whisky has been seized.

4. Liquor smuggled from other States — Liquor/alcohol smuggled illegally from other States has been seized.

5. Jaggery / Molasses / Mahua flowers seized — Jaggery (गुळ), molasses (काळा गुळ), or mahua flowers (मोहार्ु ले) used for illicit liquor manufacture have been seized.

6. Country liquor distillery transport vehicles seized — Vehicles used to transport country liquor distillery products (हातभट्टी दाब) have been seized.

7. Cognizable offence registered at illegal country liquor manufacturing site — A cognizable offence has been registered at an illegal country liquor manufacturing center (हातभट्टी दाब निर्मती केंद्र).

8. All establishments in jurisdiction closed — All liquor vends (ढाबे) and illegal country liquor manufacturing / sales units in the jurisdiction have been completely shut down.

9. Offender convicted with minimum sentence — The accused in the offence has been convicted with minimum punishment as per law.

10. Adulterated Toddy / Chloral Hydrate stock seized — Adulterated toddy (भेसळयुक्त ताडी) or chloral hydrate stock (क्लोरल हायड्रेट) has been seized.

11. Preventive detention of repeat offender — A habitual offender has been placed under preventive detention under the Maharashtra Prevention of Dangerous Activities Act (MPDA).

12. Bond money recovery from repeat offender — A repeat offender has been re-prosecuted after conviction under MPA 1949 and Sections 91 and 93 of the Bombay Prohibition Act, and the bond money deposited with the Government has been recovered and deposited with the Government by the concerned officer.

13. Excess loss in distillery disclosed and tax recovered — Excess loss beyond the prescribed limit in a distillery / liquor or beer manufacturing unit has been detected, and the tax on that loss has been recovered, OR the manufacturing license has been suspended / cancelled.

14. Counterfeit liquor manufacturing factory, labels, caps, refilled bottles seized — A factory manufacturing counterfeit liquor, along with labels, bottle caps, refilled bottles, etc., have been seized.

D. MINIMUM VALUE OF SEIZED GOODS THRESHOLD

General Rule:

The minimum value of seized goods (excluding vehicles) for a case to be considered reward-worthy is ₹25,000 (Twenty-five thousand rupees).

Exception:

The Reward Recommendation Committee may recommend to the authority sanctioning rewards to relax this minimum threshold if:

• The value of seized goods is less than ₹25,000, BUT
• The performance of the officer/employee is exceptionally excellent.

Final Authority:

However, the authority sanctioning the reward shall have the final say on whether the threshold should be relaxed.

Modification Authority:

The Commissioner, State Excise may make necessary changes to the above performance criteria as required.

E. CRITERIA FOR PRIVATE PERSONS / INFORMERS (खबरी)

Definition of an Informer:

A person (not an officer/employee of the State Excise Department) shall be called an "informer" (खबरी) if:

(i) Categories of Informers:

Category A — Informers with Knowledge of Legal Violations:

Any person who has knowledge of acts violating the following laws:

• Bombay Prohibition Act 1949 and Rules
• Drugs and Cosmetics Act 1955 and Rules
• Maharashtra Sugarcane Control Act 1956 and Rules

Category B — Informers with Knowledge of Revenue Evasion:

Any person who has knowledge of:

• Unauthorized manufacture, sale, or possession of liquor
• Liquor or beer manufactured without paying excise duty and being smuggled out of the manufacturing unit
• Illicit jaggery / molasses / mahua flowers being transported or sold
• Unlicensed distillery operations

Requirements for Valid Informer Information:

(ii) Action by Excise Officers Based on Informer's Information:

The State Excise Department officers/employees must have taken investigative action under the following laws, based on specific and accurate information provided by the informer:

• Bombay Prohibition Act 1949 and Rules
• Drugs and Cosmetics Act 1955 and Rules
• Maharashtra Sugarcane Control Act 1956 and Rules

(iii) Method of Providing Information:

The informer shall provide information in written form only, by:

• Signature (only) — name NOT to be mentioned
• Left thumb impression (अंगठयाचा ठसा) on the written information

Alternative Method (Subsequent Documentation):

If the informer provides information orally, by telephone, or by mobile phone, and action is taken based on that information, then:

• Subsequent written documentation must be obtained from the informer in the manner above (signature + left thumb impression, name NOT mentioned).

(iv) Contents of Informer's Information:

The informer's written information must include detailed and specific information about:

• Name and address of the accused / person involved
• Modus operandi (method) of the crime
• Names of all persons involved in the offence
• Vehicle number (if vehicles are involved in transport)
• Estimated quantity of liquor, beer, jaggery, molasses, mahua flowers, scotch, etc., involved
• Exact location of the offence

(v) Confidentiality Obligation:

Department officers/employees shall:

• Provide acknowledgment to the informer that their information has been received
• Keep the informer's name and address strictly confidential

(vi) Eligibility for Reward:

The informer shall be eligible for a reward if:

• Action has been taken based on the informer's information, AND
• The result is that revenue loss to the Government has been prevented (i.e., goods seized, offence detected, prosecution successful, etc.)

F. REWARD AMOUNT CALCULATION AND APPROVAL

Reward Formula and Rates

Calculation Procedure and Committee Responsibility

The Reward Recommendation Committee shall, on a case-by-case basis:

1. Calculate the value of seized goods (excluding vehicles) using:

   • FIR value, OR
   • Value at State Excise Duty / Special Tax rates applicable in Maharashtra
   • Whichever is lower

2. Calculate the excise duty amount on seized alcohol using prevailing duty rates.

3. Present calculations to the authority empowered to sanction the reward with appropriate recommendation.

Dispute Resolution in Calculation:

If the Committee faces any difficulty in the calculation, the Commissioner, State Excise shall have final authority to decide the matter.

G. PROCEDURE FOR OFFICERS/EMPLOYEES TO CLAIM REWARDS

Step 1: Proposal Submission

• The officer/employee who has performed exceptional/outstanding work shall submit a proposal to their Office Head (कायालय प्रमुख).

Step 2: Information to Include in Proposal

The proposal must state:

• Details of the work performed
• Complete information on previously sanctioned rewards — the employee must disclose how much reward amount has been previously approved/disbursed to them.

Step 3: Office Head's Action

The Office Head shall forward the proposal to the competent Reward Recommendation Committee.

Step 4: Committee's Verification Duty

When the Reward Recommendation Committee recommends the reward, it must inform the authority empowered to sanction the reward with:

• Complete details of all previously sanctioned/disbursed rewards to that officer/employee
• This information must be presented in detail to the sanctioning authority.

H. RECORD MAINTENANCE AND ACCOUNTABILITY

Record Retention by Committee Member Secretary:

• The Member Secretary of the Reward Recommendation Committee shall maintain records of:
  • Officers/employees who received rewards under this scheme
  • Reward amounts sanctioned and disbursed
  • All such records shall be kept for a minimum of 30 years.

Centralized Record at Commissioner's Office:

• Year-wise and officer/employee-wise details of sanctioned rewards shall be maintained at the Commissioner's office.

Disqualification from Using Reward as Justification:

• If a reward-receiving officer/employee is subsequently subjected to disciplinary or criminal action during their service:
  • The previously received reward amount shall NOT be used as a justification or performance metric in that subsequent action.
  • The prior reward cannot be a ground for defense.

I. NATURE OF THE REWARD — NOT A RIGHT OR ENTITLEMENT

• The reward is given in the nature of encouragement/incentive (प्रोत्साहनात्मक), NOT as a right.
• The officer/employee cannot demand the reward as a legal right.
• The officer/employee cannot claim that:
  • They are entitled to posting/transfer to their preferred location based on reward amount, OR
  • They deserve other service-related benefits (promotions, increments, etc.) based on the reward.

J. INCIDENTAL EXPENSES IN CRIME INVESTIGATION

Covered Expenses:

Expenses incurred in the investigation of cases (transportation of seized goods, loading/unloading charges, etc.) shall be treated as incidental/ancillary expenses.

K. REWARD DISTRIBUTION CEREMONIES

Frequency of Award Ceremonies:

• Divisional/District Level: Award ceremonies shall be organized at least once every three months at:

  • The office of the authority empowered to sanction rewards, OR
  • The headquarters of the concerned Divisional Deputy Commissioner

• State Level: At least one award ceremony annually at the State level.

L. COMPARISON OF REWARD AMOUNTS WITH OFFICER PERFORMANCE — CLARIFICATION

• Officers'/employees' courage and quality of work shall NOT be compared or judged by the reward amount given.
• The reward amount is a symbol of quality/performance, not a measure of it.

M. PENDING CASES FROM 2017-18

Applicability to Pending Cases:

• The Reward Recommendation Committee shall decide all reward cases pending as of the date of this Government Resolution under the terms of this scheme.

No Retrospective Review of Previous Rewards:

• Previously sanctioned rewards need NOT be reconsidered or reviewed in light of this new scheme.

N. FINANCIAL PROVISIONS AND BUDGETARY ALLOCATION

For Commissioner's Office Expenses:

Expenses related to rewards and incidental matters shall be charged to:

• Budget Head: 2039 — State Excise, Sub-head (00)(001) Director and Administration, (01) Commissioner's Office, (01)(01) Commissioner Establishment, Allocation Code (20350014) — Secret Service Expenditure (41, गुप्तसेिा खचम)

For Divisional/District Office Expenses:

Expenses related to Divisional Deputy Commissioner's office and Superintendent's office shall be charged to:

• Budget Head: 2039 — State Excise, Sub-head (02) Establishment and Prevention, (02)(01) Establishment, Inspection and Prevention, Allocation Code (20390032) — Secret Service Expenditure (41, गुप्तसेिा खचम)
• To be met from the annual sanctioned grants of the respective financial year.

O. APPROVAL AND PUBLICATION

Financial Sanction:

This scheme has been issued with the approval of the Finance Department vide informal reference No. 21/17/Expenditure-8, dated 03 February 2017.

Website Publication:

This Government Resolution has been uploaded on the official website www.maharashtra.gov.in, Reference Code: 201710091312567829.

Digital Signature:

The GR is issued under digital signature and is binding.

DISTRIBUTION OF THE ORDER

Official Distribution (प्रत):

1. Commissioner, State Excise, Maharashtra State, Mumbai
2. Accountant General-1/2 (Audit/Finance), Maharashtra State, Mumbai and Nagpur
3. All Divisional Deputy Commissioners, State Excise
4. All District Superintendents, State Excise
5. All District Treasury Officers

Information Copies (प्रत: मावहती स्तर):

1. Principal Secretary to Chief Minister, Secretariat, Mumbai
2. Private Secretary to Minister (State Excise), Secretariat, Mumbai
3. Senior-level Assistant to Principal Secretary (State Excise), Mumbai
4. Finance Department / Expenditure-8 / Financial Reforms-1, Secretariat, Mumbai
5. Vigilance (State Excise-1), Secretariat, Mumbai

IMPORTANT NOTES AND SPECIAL CONDITIONS

1. Reward Sanctioning Authority Hierarchy

The sanction authority operates on a tiered structure based on reward amount. Officers cannot exceed their delegated authority limits — higher amounts must go to the appropriate higher authority.

2. Mandatory Committee Recommendation

No reward can be sanctioned without a prior formal recommendation from the designated Reward Recommendation Committee. Committee composition is strictly prescribed and must not be altered.

3. Informer Anonymity and Safety

• Informers' identities are absolutely confidential — not even to be recorded by name in official orders.
• Informers receive rewards through the officer they reported to.
• The government shall maintain confidentiality through all administrative stages.

4. Timeline for Decision

All reward-sanctioning authorities must decide within one month of receiving the committee's recommendation. If a dispute arises, the superior authority must decide within one month of receiving the appeal.

5. Dual Eligibility Possible

An officer may qualify for rewards both as an investigating officer and as an officer filing the charge sheet, but the charge sheet officer's reward is conditional on a favorable court judgment.

6. Conviction Requirement for Court-Level Rewards

Rewards for charge sheet filing officers shall only be paid after the court judgment is delivered in favor of the Government. This is a strict condition.

7. Lifetime Cap with Limited Relaxation

Officers/employees can receive a maximum of ₹25,00,000 throughout their career. This can only be exceeded if the Government specifically relaxes it as a special exception on a case-by-case basis.

8. No Quid Pro Quo for Service Benefits

An officer receiving a reward cannot use that fact to claim:

• Preferential postings or transfers
• Promotion or increments
• Any other service benefit

The reward is purely incentive-based and cannot be converted into service entitlements.

9. Disqualification for Criminal Conviction

Any person — whether officer, employee, or informer — who is convicted under any law becomes permanently ineligible for any reward under this scheme.

10. Amendment Authority

The Commissioner, State Excise retains the authority to modify the performance criteria (निकष) as circumstances change, but he cannot unilaterally change the reward rates or sanctioning authority structure — those require another Government Resolution.

11. RTGS/NEFT Mandated for Officers; Cash Option for Informers

• Officers/employees must receive rewards via RTGS/NEFT to their bank account.
• Informers may choose either RTGS/NEFT or cash, as per their preference, to protect anonymity if desired.

12. Audit Trail for Informer Rewards

• The officer receiving information from the informer must file a receipt/acknowledgment with the Divisional Deputy Commissioner / Director / Superintendent.
• This receipt must include the informer's written information (signature + thumb impression) and proof that the reward was disbursed.
• Audit officers can demand these records during audit, and production is mandatory.

13. Non-Bailable Offence Exception

Normally, the offence should be cognizable (बैलेबल) for a case to be reward-worthy. However, if the performance is exceptionally excellent, a reward may be given even in a non-bailable offence (नॉन-बैलेबल).

14. Minimum Seized Goods Value: ₹25,000

A case must involve seized goods of at least ₹25,000 value to qualify for a reward, unless the Committee recommends relaxation due to exceptional performance.

15. Government's Right to Relax Norms

While the scheme prescribes specific rates (5% to 7%), limits (₹25,000 minimum), and caps (₹25,00,000 lifetime), the Government retains discretion to relax these norms for special cases.

16. Annual Reporting at State Level

The scheme shall be reviewed at least once per year at the State level through official award ceremonies, promoting transparency and accountability.

WHO IS AFFECTED

This scheme applies to:

1. State Excise Department Officers/Employees:

   • Junior Constables (जवान संवर्ग) to Deputy Commissioner (Senior Grade)
   • Clerical staff (if exceptional work is performed)
   • All ranks and cadres within the State Excise Department

2. Private Informers/Citizens:

   • Any member of the public providing information about violations of:
     • Bombay Prohibition Act 1949
     • Drugs and Cosmetics Act 1955
     • Maharashtra Sugarcane Control Act 1956
   • Informers need not be affiliated with the Excise Department

3. Offences Covered:

   • Counterfeit liquor manufacture and sale
   • Duty evasion in licensed distilleries/breweries
   • Illegal country liquor manufacturing (हातभट्टी दाब)
   • Smuggling of liquor from other States
   • Adulteration of toddy with harmful substances
   • Unlicensed jaggery/molasses/mahua flower trade
   • Violations under Drugs and Cosmetics Act 1955
   • Violations under Maharashtra Sugarcane Control Act 1956

4. Authorities Implementing:

   • Commissioner, State Excise
   • Director (Enforcement & Vigilance)
   • All Divisional Deputy Commissioners
   • All District Superintendents
   • Office of the Principal Secretary, State Excise

LEGAL REFERENCES AND CITED ACTS

The scheme operates under:

1. Bombay Prohibition Act, 1949 — and all Rules made thereunder
2. Drugs and Cosmetics Act, 1955 — and all Rules made thereunder
3. Maharashtra Sugarcane Control Act, 1956 — and all Rules made thereunder
4. Maharashtra Prevention of Dangerous Activities Act (MPDA) — for preventive detention of habitual offenders
5. Criminal Procedure Code — Sections 91 and 93 (bondage and recognizance)
6. Previous GR dated 20 May 1976 — partially superseded by this 2017 GR

PREVIOUS SCHEME SUPERSEDED

This Government Resolution supersedes and replaces the previous reward scheme issued on 20 May 1976 (GR ref: MIS 0174/47 (235)-XXX-PR, dated 20 May 1976), which had remained unchanged for 40 years. The new scheme reflects changes in:

• Excise duty rates
• Nature of crimes
• Criminal methodologies
• Communication technologies available to offenders

END OF ANALYSIS