Awarding supply of security stickers to Indian company challenged in Court

A writ petition has been filed in Court of Appeal seeking an order to quash awarding the supply of security stickers to an Indian security printing company by the Excise Department.

The petitioner, Lasantha Kumara, a resident of Colombo 05 also seeking an order staying the Commissioner General of Excise Department from purchasing any sticker whatsoever or making any payment to Madras Security Printers, an Indian security printing company.

Filing this petition through counsel Jayamuditha Jayasooriya, the petitioner is further seeking an order directing the Commissioner General of Excise Department to implement a system to prevent local manufactures of liquor from evading or avoiding the due payment of taxes or levies to the State.

The petitioner states that he expects to prevent loosing of revenue to a magnitude of several billions as a result of the illegal and unlawful decisions and practices of the Excise Department.

The petitioner further said the Commissioner General of Excise Department by his letter dated 19.01.2021 addressed to Treasury Secretary has informed that the affixing of stickers on foreign liquor is successfully continuing with effect from 20.07.2019 and his Department could not implement the affixing of stickers on locally manufactured liquor due to practical issues and COVID19 pandemic though it was to be commenced on 20.08.2019.

The petitioner states the Excise Department is obliged to pay a sum of Rs. 32 million every month to Madras Security Printers.

According to the petitioner, he has received information that the Commissioner General of Excise Department has awarded the said contract without conducting a proper technical evaluation and also without following the tender procedures.

The Petitioner states that the printing of direct codes on bottles and cans could cost only 15 cents which has been the practice adopted in many countries, but the Commissioner General of Excise Department is now spending about Rs. 2 per bottle which is not a safer method than the printing of direct marking codes.

The petitioner states that Buddhika Pathirana, Member of Parliament raised the said issue in Parliament on 20th of April 2021 and he pointed out the the said company is a blacklisted company in India as well as in several other countries.

The petitioner states that MP Pathirana categorically pointed out that the State has to suffer over Rs.1 billion as a result of the corrupt and illegal practice adopted by the Commissioner General of Excise Department.

The petitioner further states that this corrupt practice has caused a great foreign exchange loss to the Government of Sri Lanka while it accepts that it is in a grave state of affairs in terms of the country’s foreign reserves.

The petitioner has cited that Finance Minister Basil Rajapaksa, Secretary to the Ministry of Finance S.R. Attygalle, Commissioner General of Excise Department M.J. Gunasiri, Madras Security Printers Company and Attorney General as respondents. This petition is to be taken up on August 23.