Excise graft: Netas’ interference in transfers trumps licensing reforms

Bengaluru: Rampant interference in the transfer of excise officers by lawmakers, who are starved of grants due to the flagship ‘guarantee’ schemes, has overshadowed the Siddaramaiah administration’s liquor licensing reforms to nix corruption.

In June this year, Chief Minister Siddaramaiah launched an online portal --  karexciseservices.in -- for issuing and renewing excise licences. The portal can be used to apply for excise licences and also get existing ones renewed. The portal also offers a host of other services. 

In the 2024-25 budget, Siddaramaiah said all excise services would be digitised, including automatic approvals if timelines are not adhered to.

This should have ended bribery charges for which the excise department is notorious. But fresh corruption charges levelled by the Federation of Wine Merchants’ Association has come as a rude shock. The Federation has threatened to halt liquor sales on November 20 if the government does not address “rampant” corruption in the excise department.

“We can introduce tech and everything else, but the problem of corruption requires a political solution,” a senior officer said. “We’ve never seen this level of political interference in excise transfers. MLAs have wholeheartedly got into the transfer business. Even if we object to the transfer requests, the CM and the minister give in to pressure from MLAs,” the officer rued.  

The federation has charged that excise officials seek bribes because they had to pay for their postings.

“Transfers happen without any merit at the behest of MLAs. Even suspended officers are reinstated. What business does an MLA have in excise transfers?” the officer quoted above said.

There are over 12,000 excise licences in Karnataka, which include CL-2 (retail), CL-4 (clubs), CL-6A (star hotels), CL-7 (hotels & boarding houses), CL-9 (bards & restaurants) and so on.

“The CM and the minister concerned have to take serious note of the corruption allegations,” CM’s Economic Adviser Basavaraj Rayareddy told DH. “It’s very unfortunate that these things are happening in Karnataka.”