CAG Compliance Audit Report No. 21 of 2025: Customs Lapses and Irregular MEIS and SEIS Incentives
On 18th December, 2025 the Comptroller and Auditor General of India (CAG) laid before Parliament its Compliance Audit Report No. 21 of 2025. The report covers the Department of Revenue (Customs) and the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, for the year ended 31 March 2023.
Scale of the report
The report holds 50 audit observations, one of which is a Subject Specific Compliance Audit. The total revenue implication is ₹747 crore. The Ministries and Departments accepted 49 of the paragraphs. They have taken rectification measures worth ₹21 crore, through issue and adjudication of show cause notices (SCNs), and have reported recovery of ₹14 crore in 39 cases of incorrect assessment of Customs duties.
Where the 50 observations come from
During FY 23, Audit issued 203 Inspection Reports to Commissionerates and Regional licensing authorities, with 1,894 observations and a revenue implication of ₹1,779 crore. The 50 observations in this report, worth ₹747 crore, were sent to both Ministries between January and May 2025. The remaining cases are being followed up by the field formations. The Ministries accepted 49 of the 50 cases sent and reported the rectification and recovery described above (Paragraph 2.6).