<p>Bengaluru: The Federation of Wine Merchants Association, Karnataka, has alleged a massive multi-crore scam within the Excise Department, citing irregularities and lapses in the management and allocation of liquor licenses spanning nearly two decades.</p>.<p>In a formal petition submitted to the chief secretary of the government on March 25, the association demanded an immediate high-level inquiry by a senior IAS officer.</p>.<p>The controversy involves the transfer of 463 retail liquor licenses (238 CL-2 and 225 CL-9) to the state-run Mysore Sales International Limited (MSIL) in 2008-09.</p>.<p class="bodytext">The Federation claims that while these licenses were officially classified as defunct or non-renewed for MSIL’s use, many were simultaneously or subsequently restored for private operators in violation of state policy.</p>.<p class="bodytext">S Guruswamy, president of the Federation, highlighted significant data mismatches during the initial transfer period in 2009.</p>.<p class="bodytext">According to the petition, while the department was preparing to hand over licenses to MSIL, the total count of active private licenses in the state mysteriously increased by 44 within a 47-day window between May 15 and July 3, 2009.</p>.<p class="bodytext">“There has been a complete lack of transparency. Our findings suggest that 86 of the licenses from 21 districts purportedly given to MSIL are still active under the same names, a fact confirmed through multiple RTI queries,” said general secretary of the Federation B Govindraj Hegde.</p>.<p class="bodytext">The Federation further alleged that the department has bypassed the state’s 1994 ban on new private CL-2 and CL-9 licenses by validating defunct ones through back-door entries. Specifically, they pointed to a June 2019 order that allegedly regularised 125 CL-2 licenses without proper verification of the June 12, 2019, and August 2009 orders. They have also reportedly prepared an auction chart to facilitate this.</p>.<p class="bodytext">The merchants claimed that a comparative analysis of departmental lists reveals an overlap; at least 36 licenses appear simultaneously on the 2008-09 MSIL list, the 2019 validation list, and the list prepared for upcoming auctions in 2025-26. </p>.<p class="bodytext">The Federation has questioned the department’s current rush to auction defunct licences, noting that while the department cites a 2013 Accountant General (AG) audit as the basis for the move, the lists being used are filled with inaccuracies.</p>.<p class="bodytext">It has requested the state government to appoint a senior IAS officer to lead an investigation into excise operations since 2008 and to stay all current orders related to the auctioning of defunct licenses until the probe is completed.</p>.<p class="bodytext">It has sought strict legal action against officials found responsible for mismanaging the state’s licencing database.</p>.<p class="bodytext">“We are prepared to provide supporting documents to investigators to prove the culpability of the officers involved,” the Federation added.</p>.<p class="bodytext">They stated that they are ready to submit these documents to the Lokayukta or any other investigating agency. </p>
<p>Bengaluru: The Federation of Wine Merchants Association, Karnataka, has alleged a massive multi-crore scam within the Excise Department, citing irregularities and lapses in the management and allocation of liquor licenses spanning nearly two decades.</p>.<p>In a formal petition submitted to the chief secretary of the government on March 25, the association demanded an immediate high-level inquiry by a senior IAS officer.</p>.<p>The controversy involves the transfer of 463 retail liquor licenses (238 CL-2 and 225 CL-9) to the state-run Mysore Sales International Limited (MSIL) in 2008-09.</p>.<p class="bodytext">The Federation claims that while these licenses were officially classified as defunct or non-renewed for MSIL’s use, many were simultaneously or subsequently restored for private operators in violation of state policy.</p>.<p class="bodytext">S Guruswamy, president of the Federation, highlighted significant data mismatches during the initial transfer period in 2009.</p>.<p class="bodytext">According to the petition, while the department was preparing to hand over licenses to MSIL, the total count of active private licenses in the state mysteriously increased by 44 within a 47-day window between May 15 and July 3, 2009.</p>.<p class="bodytext">“There has been a complete lack of transparency. Our findings suggest that 86 of the licenses from 21 districts purportedly given to MSIL are still active under the same names, a fact confirmed through multiple RTI queries,” said general secretary of the Federation B Govindraj Hegde.</p>.<p class="bodytext">The Federation further alleged that the department has bypassed the state’s 1994 ban on new private CL-2 and CL-9 licenses by validating defunct ones through back-door entries. Specifically, they pointed to a June 2019 order that allegedly regularised 125 CL-2 licenses without proper verification of the June 12, 2019, and August 2009 orders. They have also reportedly prepared an auction chart to facilitate this.</p>.<p class="bodytext">The merchants claimed that a comparative analysis of departmental lists reveals an overlap; at least 36 licenses appear simultaneously on the 2008-09 MSIL list, the 2019 validation list, and the list prepared for upcoming auctions in 2025-26. </p>.<p class="bodytext">The Federation has questioned the department’s current rush to auction defunct licences, noting that while the department cites a 2013 Accountant General (AG) audit as the basis for the move, the lists being used are filled with inaccuracies.</p>.<p class="bodytext">It has requested the state government to appoint a senior IAS officer to lead an investigation into excise operations since 2008 and to stay all current orders related to the auctioning of defunct licenses until the probe is completed.</p>.<p class="bodytext">It has sought strict legal action against officials found responsible for mismanaging the state’s licencing database.</p>.<p class="bodytext">“We are prepared to provide supporting documents to investigators to prove the culpability of the officers involved,” the Federation added.</p>.<p class="bodytext">They stated that they are ready to submit these documents to the Lokayukta or any other investigating agency. </p>