Operating licences also included in e-auction, alleges wine merchants’ federation

Firing another salvo at the Karnataka government, the Federation of Karnataka Wines Merchants Association on Friday (March 27) claimed that the Excise Department had included 86 licences that have already been renewed as part of the 579 licenses to be auctioned to individuals. Demanding a probe into this, the federation has said it will approach the Governor and Enforcement Directorate with a complaint.

The e-auction of 579 licences which was expected to fetch the cash-starved government a minimum of ₹600 crore has been currently stayed by the Karnataka High Court. As many as 27 individuals have approached the court against the e-auction, the federation said.

BJP’s demand

The wine merchants had in January alleged massive corruption in the Excise Department, following which the Opposition BJP had demanded the resignation of Excise Minister R.B. Thimmapur. The Minister, however, has defended himself by saying that the accusations are coming since the State government is rolling out reforms in the department.

The federation’s office-bearers told presspersons on Friday (March 27) that defunct licences had been given away to Mysore Sales International Limited (MSIL) when 463 licences were issued to the State-run corporation in 2008-2009, and that sometime later, it had been given back to the original licence holders, only to now be listed as part of the e-auction.

“Once the licence holder lost his licence to MSIL, it should have been over. However, over a period, licences had been issued back to individuals. These renewed licences have again been put on auction. The number could be much more than 86 since we have compiled details from 21 districts only,” federation general secretary Govindraj Hegde said.

He further alleged that it is not just the renewed licenses that are being auctioned; 102 licences of MSIL that are being operated currently are also being auctioned. “The federation has petitioned Excise Minister R.B. Thimmapur and Chief Secretary Shalini Rajineesh, but no action has been taken against officials for the major blunder,” lamented Mr. Hegde.

The federation also said that though no new CL 2 and CL 9 licences have been issued since 1994, the number of CL2 and CL 9 licences have increased by 515.

Only after HC order

Meanwhile, Mr. Thimmapur told The Hindu that the government is not auctioning any licence that is currently operational. “We are only auctioning those licences which are defunct. The e-auction will take place only after the High Court vacates the stay,” he noted.