MP liquor tenders: Congress demands probe into 4 firms holding 70% market share
Synopsis
Key Takeaways
Madhya Pradesh Congress president Jitu Patwari has written to Chief Minister Mohan Yadav demanding an independent, high-level investigation into the alleged monopolistic dominance of a few select companies in the state's liquor tender process, asserting that just four groups control nearly 70 per cent of the market. The letter, addressed from Bhopal, calls for a comprehensive audit of major liquor tenders across 33 districts covering the period from 2012-13 to 2026-27.
What Patwari Alleged
Patwari contended that a handful of companies have maintained a stranglehold over the liquor trade for years, with the same firms repeatedly securing contracts across multiple districts. 'If these facts are correct, this cannot be dismissed as a mere coincidence. It raises serious questions about the transparency and fairness of the entire tender system,' he wrote in his letter to Yadav.
The Congress leader questioned why similar patterns of concentration persisted even after the government introduced online tendering — a system designed to enhance competition and reduce the scope for manipulation.
CCI Action and the 2022 Disruption
Patwari also referenced prior action by the Competition Commission of India (CCI) and the alleged disruption of earlier concentration patterns in 2022, suggesting that a comparable trend may have re-emerged. He argued that if the same dynamics had resurfaced, an impartial investigation was not just warranted but necessary.
Notably, this is not the first time the state's liquor tender process has drawn scrutiny. The CCI reference signals that competition regulators have previously taken note of market behaviour in this sector.
Revenue Loss Concerns
Beyond transparency, Patwari raised the question of financial impact on the state exchequer. He sought an assessment of the gap between actual revenue earned through liquor tenders in previous years and the revenue that could potentially have been generated had the bidding process been more competitive. Madhya Pradesh's liquor trade reportedly generates thousands of crores of rupees annually, making the stakes significant for state finances.
'The government's responsibility is not to protect any business group but to ensure fair competition and protect the state's revenue and public interest,' Patwari stated.
Key Demands from the Congress
The Congress president has sought public disclosure of several details, including the names of companies that secured tenders in various districts, the number of years each firm continued to receive contracts, bids submitted by all participating companies, their eligibility criteria, and the basis for final selection. He also demanded an investigation into whether any company or group had actively influenced competition in the liquor market.
'If the tender process has been completely transparent and fair, the government should have no hesitation in making all facts and documents public,' Patwari added.
What Happens Next
The Bharatiya Janata Party (BJP) government in Madhya Pradesh is yet to formally respond to the letter. The opposition's push for disclosure puts the Yadav administration under pressure to either release tender documents or risk the perception of shielding vested interests. Political observers will watch whether the demand gains traction ahead of any upcoming legislative session.