Karnataka Liquor Shops to Close on November 20 Over Corruption Allegations; Wine Merchants Association Demands Reform
In a brazen move, the Karnataka Federation of Wine Merchants Association has said it will maintain more than 10,800 licensed liquor shops closed on November 20. The protest strike has been called over what they term rampant corruption within the state's excise department and the failure of the government to fulfill their demands. All private liquor shops will be closed, and government-owned shops will be open.
The protest comes after a sharp sparring with the association after raising scandals concerning corruption within Karnataka excise department. The group had advocated for a revamp of the department, suggesting its merger with the finance ministry of the state as they try to ensure transparency and proper management. Demands include amendment of Section 29 under the Karnataka Excise Act that accords government officials the powers to suspend or cancel the license to sell liquor-it's an action frequently misused by the merchants argue.
B Govindraj Hegde, General Secretary of the Federation of Wine Merchants Association, opines that the basic demand of the association is a sit down with Chief Minister Basavaraj Bommai to understand these issues from his end. Hegde has clarified that since there is an inappropriate budget in the excise department, it should come under the finance ministry for better regulation. These require higher margins of 20% on the liquor business and allow the sale of alcohol at licensed retail outlets.
However, not everyone has come on the bandwagon. The Karnataka State Tourism Hotel Owners Association (KSTHOA) is one such body who has strongly condemned the decision taken by the Wine Merchants Association to stop selling alcohol without any prior intimation to the hotel owners. "This is one-sided," read a statement from Govinda Koulagi, Secretary, KSTHOA. In every other business, the sale of alcohol accounts for a large chunk of revenue, and thus the wine merchants should consider the financial burden this would cause to the hotel owners, who have sunk big money into their respective establishments and give a substantial chunk of change to the wine merchants.
Meanwhile, the association has dismissed allegations by Prime Minister Narendra Modi on a bribery scandal in Karnataka's liquor trade. Hegde dismissed allegations that Karnataka liquor merchants had paid ₹700 crore in bribes in view of elections.
Karnataka is gearing up for this behemoth protest and the state is holding its breath with the alcohol trade. This confrontation's aftermath can rewrite the statute in the liquor regulation in the form of much-needed reforms in both the excise department and the retail alcohol industry.
