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The Federation of Wine Merchants Association Karnataka has declared a state-wide shutdown of private liquor outlets on November 20th, in a strong protest against what they allege is rampant corruption within the Karnataka Excise Department. The Federation claims that the corruption within the department has reached unprecedented levels, particularly concerning bribery for transfers and promotions. They accuse excise officials of accepting bribes in “lakhs and crores” and manipulating the Karnataka Excise Act to benefit their own interests. The Federation further criticizes the department's enforcement arm for failing in its duty and instead focusing on intimidating merchants.
The heart of the Federation's grievance lies with Section 29 of the Karnataka Excise Act, which grants excise officials the authority to cancel or suspend excise licenses or permits. The Association argues that this power is frequently abused to target merchants, forcing them into compliance through intimidation or bribery. They claim that these practices not only promote unethical behavior but also have a detrimental impact on the state's excise revenue. They believe businesses are discouraged due to the corrupt practices, diverting funds away from official revenue channels.
Seeking a solution to this systemic issue, the Federation has put forth several demands. Their primary demand is an amendment to Section 29 of the Excise Act to curb the misuse of this power by excise officials. They also advocate for the merger of the excise department with the finance ministry, believing that such integration would streamline oversight and improve financial and ethical regulation of the excise sector. The Federation believes the finance ministry's oversight would provide greater capacity to monitor and control malpractices, leading to a reduction in bribery and an increase in transparency within the department.
The Federation has also expressed frustration over the lack of communication and attention from high-ranking government officials, including Chief Minister Siddaramaiah. Despite a protest by thousands of merchants on October 25th, they feel their concerns have not been adequately addressed. The opposition BJP has seized upon the Federation's claims to criticize the ruling Congress party, accusing them of having connections to the excise corruption. This political maneuvering has intensified the situation, with accusations of a “wine scam” and allegations that the Congress-led administration is benefiting from the corruption.
The BJP claims to have uncovered whiskey worth over Rs 50 lakh at the residence of Avinash Malli Shetty, a Congress leader in Udupi and director of the Bola Cooperative Society. They allege that funds from the excise corruption are being used to fuel the party's electoral campaigns. The Congress government has vehemently denied these accusations. The issue took a further turn when Prime Minister Narendra Modi, during a Maharashtra campaign, alleged that excise revenue from Karnataka was being redirected for electoral use outside the state. He implied that the funds were being used to support bypoll campaigns in Maharashtra and Jharkhand, further strengthening the BJP's claims of misappropriation of funds for political gain by Congress leaders in Karnataka.
In response to Modi's allegations, Karnataka Chief Minister Siddaramaiah challenged the Prime Minister to prove his claims, stating that he would quit politics if the allegations were true. Siddaramaiah dismisses the accusations as politically motivated, while simultaneously accusing the BJP of resorting to personal attacks to regain influence in Karnataka. This political blame game, however, overshadows the core issue of corruption within the excise department and its impact on the state's revenue and the livelihoods of merchants.
Source: Karnataka wine merchants call for bandh on November 20, protest excise corruption