Wine merchants threaten to halt liquor sales over 'corruption' on Nov 20 in Karnataka

Bengaluru: The Federation of Wine Merchants’ Association, Karnataka, has threatened to halt liquor sales on November 20, if the government does not address “rampant” corruption within the excise department. 

The association also urged the chief minister to convene a meeting to address its concerns and to bring the excise department under the finance department. 

In a letter dated October 30, federation president S Guruswamy and general secretary B Govindaraj Hegde highlighted these issues to the chief minister, excise minister, chief secretary, additional chief secretary (finance), excise commissioner and secretary (finance-expenditure). 

The association notes that it has raised these demands on various occasions, including in a February 21 meeting with the excise minister and a protest meeting the following day.

Despite efforts by district affiliates who appealed through deputy commissioners, the association claims that the government—particularly Excise Minister R B Thimmapur—showed no interest in addressing their grievances. 

"Corruption in the excise department has crossed limits. We organised a massive protest in Bengaluru on October 25, but received no response,” it said. 

On November 4, Ajith S N, an RTI activist, sent an email to the chief minister, the Governor, Lokayukta, the chief secretary, the Lokayukta ADGP, additional chief secretary (finance), Union Minister H D Kumaraswamy and leader of the Opposition R Ashoka. 

The email levelled serious corruption allegations against the excise minister and excise department officials.

It alleged that the excise department took bribes of Rs 16 crore for the transfer of officials in and around Bengaluru in the last three-and-a-half years. 

He alleged that three excise deputy commissioners, nine superintendents, 13 deputy superintendents and 20 inspectors paid bribes to get transfers in and around Bengaluru, with the entire operation allegedly coordinated by Basavaraj Sandigawad, an excise department deputy commissioner. 

DH could not verify the authenticity of the email. 

Ajith claimed that excise deputy commissioners had to shell out Rs 2.5 crore to Rs 3 crore for transfers, while superintendents paid up Rs 25 lakh to Rs 30 lakh, deputy superintendents Rs 30 lakh to Rs 40 lakh and excise inspectors Rs 40 lakh to 50 lakh. 

Ajith claimed that Rs 18 crore was collected within a week, of which, Rs 13 crore went to the excise minister, Rs 50 lakh to Rs 1 crore to his office staff and Rs 3 crore to the senior officer who led the operation. He alleged that the money was laundered for “election purposes.”

The association has denied any connection to Ajith or his email. 

“An activist seems to have written the letter. However, I think the email holds some truth. Corruption has always been a part of the excise department regardless of which government is in power. For the past 25 to 30 years, we’ve been bringing this to the attention of various governments. No government has entertained our demands. The excise department does not get grants from the government and is not interested in anything but corruption. That is why we are suggesting that the excise department be absorbed into the finance department,” Karunakar Hegde, the association’s Bengaluru divisional president, told DH.