Karnataka Faces Potential Excise Scandal: BJP
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Synopsis
The BJP in Karnataka has accused the Congress-led government of nearing an excise scam similar to Delhi's AAP. Allegations include plans to auction non-existent liquor licenses, potentially violating previous court orders. The opposition fears significant revenue losses and legal repercussions as the government proceeds with its auctioning plans.
Key Takeaways
- Karnataka BJP claims Congress government is heading toward an excise scam.
- Allegations of illegal auctioning of non-functional liquor licenses.
- Proposal could generate Rs 2,000 crore in revenue.
- Potential legal action from the wine merchants' federation.
- Concerns over violations of a High Court order.
Bengaluru, Feb 18 (NationPress) The BJP in Karnataka asserted on Tuesday that the Congress-led administration in the state is "on the verge of an excise scandal" reminiscent of the Aam Aadmi Party (AAP) in New Delhi.
R. Ashoka, the Leader of the Opposition in the Karnataka Assembly, alleged that the Congress-led government is trying to "plunder" the state through yet another "deceptive scheme by unlawfully auctioning non-existent liquor outlets".
According to sources, the Congress-led government is preparing to illegally auction licenses for non-operational liquor stores solely to boost revenue. This procedure has advanced to its final stages, with the government opting for an open auction.
Per rule 12 of the Excise Department, the allocation of licenses is determined based on the demographics of both rural and urban areas.
In 2009, 463 licenses were not renewed and were taken over by Mysuru Sales International Limited (MSIL), a government-owned entity. This included 125 inactive liquor shops. It is alleged that a proposal has been colluded with authorities for the renewal of these licenses, Ashoka asserted.
The government is optimistic about this proposal, claiming that the new public auctioning system could generate Rs 2,000 crore in revenue. The federation of wine merchants is preparing to seek legal action should the government proceed with its plans.
Sources revealed that officials have also "disregarded" a High Court ruling to cancel 385 wine shops allocated under the CL-2 quota. Despite an order issued in 2018, the officers seem unconcerned.
Currently, there are 13,519 liquor establishments in the state, which comprises 4,002 wine shops, 302 clubs, 95-star hotels, 2,994 hotels and lodges, 71 military canteens, 3,644 bars and restaurants, and 87 wine boutiques.
