BENGALURU; As Karnataka gears up for a high-stakes bye-election, the Congress-led state government finds itself ensnared in yet another controversy. In addition to ongoing accusations regarding mishandling of Waqf properties and the Valmiki Corporation scandal, fresh claims of systemic corruption have emerged from within the Excise Department. Allegations are pointing fingers at departmental officials, and even a minister, for running an organized bribery operation that has driven liquor vendors to take a united stand.
The Karnataka Wine Merchants Association has announced plans to shut down liquor sales across the state on November 20 in protest, citing a climate of relentless extortion and intimidation. The association claims that senior Excise officials, acting with the alleged knowledge of Minister R.B. Thimmapur, have established an unofficial monthly “protection money” system, where they demand substantial bribes from liquor vendors to allow smooth operations.
Complaint to governor
In a complaint submitted to the Governor, liquor vendors detailed a system of extortion allegedly enforced by top officials. The Karnataka Wine Merchants Association claims that vendors are required to pay exorbitant monthly sums to officials, ostensibly as a “safeguard” against disruptions in their business. According to reports, vendors who fail to comply face undue delays in license renewals, administrative roadblocks, and harassment from regulatory authorities. The bribes reportedly start at a baseline amount but can increase based on location, the size of the establishment, and other factors.
The corruption, vendors allege, extends to a wide range of department dealings—from license renewals and compliance checks to routine inspections and issuance of stock permits. Some vendors report that they are now paying up to Rs 5 crore in bribes just to maintain standard operations. This extortion scheme, they say, has been growing unchecked, forcing many to consider closing their doors or mounting a unified protest.
According to Karunakara Hegde, Vice President of the Karnataka State Liquor Vendors’ Association, “If the government ignores our demands for change, we will shut down all liquor stores indefinitely. We are requesting an immediate restructuring of the Excise Department under the Finance Ministry, and for Minister Thimmapur to be removed from his post.”
Minister RB Thimmapur, who heads the Excise Department, is now at the center of a political storm. Allegations from within his department suggest that not only were his aides involved in the extortion but that the minister himself was aware of the practices. The liquor vendors claim that every level within the Excise Department—from the commissioner down to field officers—operates under a set “bribe quota,” allegedly allocated to cover both departmental heads and the minister.
The vendors further allege that these fixed bribes create an immense financial burden, exacerbating the already high costs of doing business. Many vendors are concerned that these funds ultimately fuel illicit activities, allowing counterfeit liquor to circulate in the market and giving rise to interstate liquor smuggling.
Opposition leaders have seized upon these accusations, adding to the public pressure. R. Ashok, a prominent opposition leader, lambasted the government for what he called “a network of corruption thriving in every corner of the administration.” He stated, “The letter written by the Wine Merchants Association to the Governor is proof of a deep rot within the Excise Department. It’s not just the Excise Department—this culture of corruption is rampant in all state departments. The Chief Minister must act, or he should be prepared to step down.”
Karnataka's whopping ₹700 crore liquor scam!
The Karnataka Wine Merchants’ Association in its letter to CM @Siddaramaiah has alleged that State Excise Minister R.B.Timmapur is involved in blatant extortion and bribery, unfolding another dark episode of the series of scams by… pic.twitter.com/VtlfWu85KA
— R. Ashoka (@RAshokaBJP) November 5, 2024
The vendors’ association has taken its protest a step further by submitting a formal complaint to Karnataka Governor Thawar Chand Gehlot. In their appeal, vendors asked the Governor to address the unchecked corruption within the Excise Department and consider transferring oversight to the Finance Ministry to improve accountability. They also indicated a readiness to escalate the matter to the Central Bureau of Investigation (CBI) if the state government fails to intervene. According to the association, a CBI inquiry is essential to expose the full scope of corruption, especially if higher-level officials, including the minister, are implicated.
In response to the accusations, Minister Thimmapur stated, “I am unaware of any corruption within my department, and I am willing to investigate if provided with a list of officials involved. I encourage anyone with proof to come forward.” However, his statement has done little to quell public concern, and it has only further frustrated vendors, who allege that the minister is attempting to deflect responsibility.
Mounting Frustration Among Liquor Vendors and Public Sentiment
The Karnataka State Liquor Vendors’ Association has expressed frustration over the government’s lack of accountability. Guruswamy, President of the association, argued that “bribery has become a precondition for any form of cooperation with the department.” He claimed, “Officials from the top to down have fixed quotas to meet, with each vendor expected to contribute. This is not just corruption; it is organized exploitation under the guise of administrative regulation.”
Reports also indicate that department officials have blocked transfers or punished those who attempt to challenge the system. Allegedly, even lower-level officials are required to “contribute” to the bribe pool, creating a cycle of pressure that fuels corruption at every level of the department.
Excise Minister Faces Growing Calls for Resignation
The protest scheduled for November 20 is seen as a flashpoint, with vendors and political opponents alike demanding Minister Thimmapur’s resignation. The Wine Merchants Association has made it clear that they will not relent until their concerns are addressed. Opposition leaders have supported this demand, suggesting that the Excise Minister’s resignation may be necessary to restore public trust in the state government.
With Karnataka’s political landscape already charged due to ongoing by-elections, this scandal has placed additional strain on the Congress-led government, and it remains to be seen if the administration will act decisively to prevent further fallout. The statewide liquor ban on November 20 is expected to capture national attention, potentially putting pressure on the Siddaramaiah government to clean up its departments or face intensified public scrutiny.
A Tipping Point for Accountability?
The Karnataka government now finds itself at a critical juncture. Between allegations of corruption and the threat of widespread shutdowns from a sector integral to state revenue, the administration faces increasing pressure to demonstrate accountability. With opposition leaders and local vendors openly questioning the integrity of the Congress administration, the handling of this crisis could impact both the by-election results and the overall reputation of the current government.
As liquor vendors and concerned citizens await action from CM Siddaramaiah’s office, the November 20 protest is anticipated as a day of reckoning for the state’s Excise Department, the Congress administration, and a system that critics claim has long tolerated—and even encouraged—rampant corruption.
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